As the end of the year is approaching quickly, there are several steps small businesses can take to adjust their 2012 taxes. Fox News provided seven payrolling tips for small-business owners looking to improve end-of-year numbers.
1. Hire a veteran. If organizations hire a veteran before December 31, For-profit organizations can earn up to $9,600 per worker in tax credits while nonprofits can earn up to $6,240.
2. Review fringe benefit packages. Offering employees fringe benefits instead of standard raises may lessen a business' tax burden. Giving employees health vision, childcare and other benefits cuts payroll taxes, according to Fox.
3. Evaluate Bonuses, as they are subject to payroll tax cuts. It's also important to process bonuses through payroll before paying them to avoid legal trouble.
4. Prepare for 2013. Ask employees to review their exemption claims and to complete new W4 Forms.
5.Ensure gross wages match year to date wages on the payroll report given to accounting. Balance payroll figures correctly.
6. Businesses that pay state unemployment taxes should alert their payroll provider to prevent penalties.
7.Include cost of health insurance in all documents given to payroll services.
