Learn how the tax code is changing for businesses in 2021 and if you can…
While April 15th is probably circled on your calendar as the big tax day, it's certainly not the only important date to remember when it comes to your small business taxes. In fact, there are tax forms and payments to make throughout the year for most business owners. To help you plan your year when it comes to your taxes, our small business accounting firm in Raleigh is sharing the tax deadlines you need to know.
Annual Tax Return Due Dates
Due dates for annual business tax returns do vary, depending on the type of business you have. While sole proprietorships and single-proprietor LLCs as well as C-Corporations using Form 1120 file on April 15th, Partnerships using Form 1065 and S-Corporations file on March 15th.
If you do need additional time to file your annual taxes, you can request a six month extension by the applicable due dates. For a sole proprietorship or single-member LLC, you would use Form 4868 while other companies will use Form 7004.
W-2 and 1099 Forms
If you have employees or have hired independent contractors, all information must be submitted to the IRS by February 1, 2021. In addition to providing a copy of the W-2 or 1099-NEC Form to the IRS, you need to provide copies to your employees or contractors by that date, too.
Estimated Quarterly Taxes
If you are self-employed, whether you own a business that's a sole proprietorship or you're an independent contractor, you need to provide estimated tax payments each quarter. You do still need to file an annual form before April 15th, taking care to report any tax you've paid through your quarterly taxes.
Use form 1040-ES, Estimated Tax for Individuals to calculate how much you owe per quarter through 2021. If your business is classified as an S-corporation or C-corporation, you will need to file and pay if your estimated amount is over $500 for the quarter. For sole proprietorships, you will need to file if your estimated amount is over $1,000. Be sure to submit your quarterly estimated taxes before the following dates:
- January 1 - March 31: April 15
- April 1 - May 31: June 15
- June 1 - August 31: September 15
- September 1 - December 31: January 15, 2022
Federal Unemployment Taxes
If your business has w-2 employees, you'll also need to submit federal unemployment tax payments. Federal unemployment (FUTA) due dates are based on how much tax is owed. Currently the rate is 6 percent of the first $7,000 you've paid to each employee in 2020, though you can apply a tax credit based on state unemployment taxes.
If you owe more than $500 annually, you are able to make quarterly payments based on the following schedule:
- January 1 - March 31: April 30
- April 1 - May 31: June 30
- June 1 - August 31: September 30
- September 1 - December 31: January 31, 2022
Contact Our Raleigh Small Business CPA Firm
For information about accounting and tax services for your small business contact us at 919-420-0092 or complete our contact form to get started!