3 Things To Keep In Mind When Starting a Business
It is always an exciting and nerve-wrecking experience to start a new business venture. You have to carry out so many tasks within the shortest possible time. If you are planning to hire employees, there are tons of federal and state forms and applications that you will need to complete to ensure that your business is on its way as early as possible. This is where we can come to your rescue.
Employer Identification Number (EIN)
It is also known as the Federal Tax Identification Number and is the first and foremost thing that needs to be acquired since it will be used in a number of forms and applications. An online application is the fastest way to apply for the acquisition of the Employer Identification Number (EIN) through the IRS online web portal or via their telephone number. It takes almost a couple of weeks if applied via fax or mail. You can only apply for a single EIN per day. Previously, applications were allowed to apply for a maximum of five EINs per day.
State withholding, Unemployment and Sales Tax
Once you have acquired the EIN, you are required to fill out forms to set up an account with the state for payroll tax withholding, Unemployment Insurance Registration and sales tax collections (if valid).
Payroll record keeping
Maintenance of payroll records and reports can be extremely time consuming and prove to be an expensive proposition, particularly if it is not managed appropriately. You also need to remember that all employers must transmit federal payroll tax deposits electronically. It is mandatory that personal files are maintained for each employee and should contain each employee’s application for the job along with the following documents:
- Form W-4: It is filled out by the employee and used to determine the federal income tax withholding. It also contains important information such as address and social security number.
- Form I-9: It has to be completed by the employer to verify that the employee is legally permitted to work in the US.