No Deposit, Big Return
And that's good news from the IRS.
In an effort to make life easier for small businesses, the IRS recently scrapped monthly employment tax deposit requirements for about 1 million small-business owners. Under the new rules, the IRS will allow businesses to make payments every three months if they have less than $2,500 in quarterly employment taxes. Previously, payments were permitted every three months only if businesses had less than $1,000 in quarterly employment taxes.
The IRS says the new rule is advantageous-it reduces the frequency of deposits, small businesses will encounter fewer mistakes and penalties, and quarterly payments will allow better cash flow. Small businesses that qualify under the new rule may pay their employment taxes when they file Form 941, "Employers Quarterly Federal Tax Return."
Continue reading this article - and everything on Entrepreneur!
We make some of our best content available to Entrepreneur subscribers only. Become a subscriber for just $5 to get an ad-free experience, exclusive access to premium content like this, and unlock special discounts.
Entrepreneur Editors' Picks
-
Crypto Doesn't Have to Be Serious. Just Ask This Comedian Who Organized a Conference About Failure in the Industry.
-
Want to Succeed? Turn Your Fixed Mindset Into a Growth Mindset.
-
Google's CEO Is Asking Employees 3 Simple Questions to Boost Productivity
-
'Greatest Storyteller Wins.' Katy Perry on the Surprising Link Between Pop Stardom and Entrepreneurship.
-
How to Unleash Your Creativity and Transform Your Marketing Strategy
-
The 5 Personalities You Meet in a Coworking Space
-
'Man's Best Friend' — and Investment: The Thriving Industry of Pet-Related Franchising