Tax season can be intimidating for new business owners, but the process is probably easier than you think. Here is what it takes to file taxes for your business, including the paperwork a business would need for employees:
Get an EIN: Before you can distribute paperwork for your employees, you will need to obtain an Employer Identification Number, or EIN for your business. Obtaining an EIN number requires the completion of Form SS-4 which can be completed online, by fax or by mail. If you need your EIN quickly, it is recommended that you fill out the EIN form online. Submitting the form by fax or mail will result in several weeks of waiting for a reply. Once you have your EIN, you should allow about two weeks for the IRS to process all of your information before you file taxes.
W-4 Forms: Each employee should fill out a W-4 form, where they can claim tax allowances. Once a W-4 is filed, the employee does not need to submit a new from unless he or she wishes to change the number of allowances. It is a good idea to keep your employees W-4 forms on file.
The I-9: This verifies your employee’s ability to work in the US. While you do not need to file the I-9 with any specific organization, you should keep the form, as well as copies of the supporting documents for up to three years. You may be required to present these forms to ICE or Immigration and Customs Enforcement upon request.
File the 490: Form 490 is a report for your federal unemployment tax, which is a requirement for any business owners who hire employees. This is required by all companies that have paid over $1,500 to an employee per quarter, or have had an employee work 20 or more weeks per year.
Preparing for tax season isn’t as hard as it seems, but if you are feeling nervous, it is always a good idea to seek the advice of a tax expert.