How a PEO Company Can Help with Small Business Taxes
Tax season is never a fun time of the year, and that’s whether you’re filing for yourself, your family, or if you have a whole business to consider. Of course, the more complex your business, the more confusing and even chaotic your tax situation may become. One advantage to working with a PEO company then is making your life easier when it’s time for small business tax season.
First, you have to consider the ways that a PEO company affects and actually improves your bottom line when it comes to small business taxes. When you’re leasing employees or using a provider for one service or another, you’re not responsible for paying social security or Medicare taxes. You also won’t have to pay unemployment taxes.
Further, with leased employees, you don’t have to worry about any withholdings from their own paychecks. And if you’re using a provider to handle your payroll for you, then you don’t have to worry about payroll, withholdings, retirement accounts and/or matching benefits, or anything else, for yourself and your full-time employees, beyond any leased employees. Your PEO company seamlessly handles all of the logistics so you can focus on what matters most for your business.
Of course, you need to be clear about the specific arrangement in place between yourself, the PEO company, and in the employees in question. Be sure you’re working with a reputable provider and you’re not caught off guard thinking employees tax withholdings or workers compensation were not your concern, when some fine print actually decreed that they were.
When tax season arrives, the PEO company you’re working with should be able to easily procure the documents and forms you need, and all of the relevant reporting and numbers from your previous year of business. And then if you’re using a PEO company to provide you with in-house accounting, they can go ahead and file those small business taxes for you, too. That was easy, wasn’t it?
To learn more about working with a PEO company and how it can be beneficial in regards to taxes for your small business, call us at 407.272.1976 today.