The tax code is ever-evolving, and in light of the COVID-era relief and tax breaks changing again in 2021, there’s never been a better time to get a jump on your tax preparations.
Paperwork, whether physical or digital, is a necessary pain for any business. Your dealings with employees, freelancers, independent contractors, consultants, investments, property and real estate taxes, Social Security, Medicare, and Economic Impact statements all have to be reported in separate and precise processes.
Accurate records and organized record keeping is the best way to ensure your taxes are filed on time and without error. One of the easiest ways to stay organized is e-filing. E-file360 can help you stay organized this tax season by handling your filing needs. Here’s how it works.
The COVID-19 pandemic has changed many tax rules and program qualifications, and it’s never too early to implement practices and do some research on the tax programs that will help you make the most of your business’s situations.
We at eFile360 have complied a few different blog articles that can help you by identifying tax breaks for the tax year 2021 including everything from charitable contribution opportunities to QBI, state, and local tax deductions.
We also shared some tips and tools for minimizing your taxes here.
While your tax records may be less extensive when it comes to hiring freelancers and independent workers, it’s even more important to make sure that you are well-educated in the tax matters that will apply to the worker’s relationship to your business. When they are as well-versed as you, you will both be more likely to swap correct records and share the applicable forms and reports that will help everyone file their taxes smoothly.
Classify Workers Properly From the Start
In this new gig economy, where growth has been driven up exponentially due to the coronavirus pandemic, it’s increasingly important to classify workers properly in your tax records.
The contract or freelance agreement is becoming less instrumental to determining whether a worker is an independent contractor or a company employee. It’s shifting more toward the nature of the work itself. If the worker has more control over how and when the work is being executed, they will be classified as a non-employee or independent contractor. If not, the role is likely going to be classified as an employee of your business.
The nature of the work, the worker’s involvement in the company, and the relationship between worker and employer (whether it is temporary or permanent in nature) will also affect the classification of workers as it pertains to your business’s taxes.
Invest in Good Record-Keeping Solutions like efile360
You don’t have to start from scratch when it comes to finding fitting solutions for your tax prep needs. eFile360 is one of the most cost-effective e-filing services for 1099, 1098, W-2, and Affordable Care Act forms. The cost of e-filing is based on the number of forms in your order and the delivery method you choose. We can also help with TIN checking.
To streamline your tax e-filing process, sign up for a free eFile360 account today.