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Navigate complex tax filing requirements by managing deadlines and understanding the expectations for your small to medium-sized business.

 Tax season is always a busy time for businesses of any size. Managing financial information, tax deadlines, and running a small to medium-sized business (SMB) is no easy feat. Get started early to avoid additional stress and accidental, costly mistakes.

Quarterly Tax Dates and Payment Periods

It’s important to know where to start when preparing your business taxes. Understanding the requirements of you and your SMB will allow you to keep up with the deadlines and avoid tax season headaches.

Who pays estimated tax?

There are two groups who are expected to pay estimated taxes:

•  Sole Proprietors, partners, and S corporation shareholders if they expect to owe tax of $1,000 or more

•  C corporation do if they expect to owe tax of $500 or more

Where do you fit?

Understanding what applies to you and your SMB begins by knowing how your SMB is classified:

Sole Proprietors

•  Your business and personal assets are grouped together

•  Your taxes are paid as part of your personal income tax return

Partnerships

You and your partner(s) pay business taxes on personal income tax returns

S Corporation (smaller business)

You (the owner) pay taxes on your portions of the business income as part of your personal income tax return

C Corporation (fully incorporated)

The company files and pays corporate tax returns instead of passing income into the owner’s personal income tax return

Quarterly Tax Dates

The IRS expects to receive most business taxes throughout the year every 3 months. Make sure to add these important dates to your calendar to stay ahead of late fees:

•  April 18, 2022: Pay taxes on revenue earned from January 1 – March 31, 2022

•  June 15, 2022: Pay taxes on revenue earned from April 1 – May 31, 2022

•  September 15, 2022: Pay taxes on revenue earned from June 1 – August 31, 2022

•  January 16, 2023: Pay taxes on revenue earned from September 1 – December 31, 2022

Corporate Tax Deadlines

The IRS requires tax reporting of the previous year’s income during the fourth month following the calendar or fiscal year. This year, the deadline is April 18, 2022, except for those in Maine and Massachusetts who have until April 19, 2022 since April 18th is a state-recognized holiday.

Furthermore, there are deadlines associated with providing annual compensation reports to your staff and contractors. Not only must you send them documents indicating how much they received in 2021, but you must also submit a report to the IRS summarizing the total compensation your SMB paid out in 2021.

W-2 Filing Deadline

January 31, 2022

W-3 Transmittal Form Deadline (Summary of All W-2s distributed)

January 31, 2022

Form 1099-NEC Deadline

January 31, 2022

Form 1099-MISC Deadline

January 31, 2022

1096 Transmittal Form Deadline (Summary of all 1099s distributed)

January 31, 2022

Have questions?

As the owner of an SMB, there is a lot to keep track of. KPMG Spark is here to provide exceptional tax prep assistance. Whether you need help with organizing, managing, or filing your business’ taxes, KPMG Spark is here to help. Connect with a tax specialist today to get all of your questions answered and set you on track for a winning tax season!

 

 

The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG LLP.

This blog article is not intended to address or provide advice concerning the specific circumstances of any particular individual or entity and does not constitute an endorsement of any entity or its products or services.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

KPMG SparkMarch 4, 2022Posted In: Tax Tips

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