For some small business owners, it may feel like an epic feat just to declare they’ve made it through the holiday season. But the next few months could arguably prove to be even more…well, taxing.
Did you know that despite the federal minimum wage being set at $7.25 (since 2009), more than half of the states and territories in the U.S. have a minimum wage that’s higher than that? Some states have wages that are set to raise even higher in the middle of the year as well.
With approximately a million and one things to remember on a daily basis, state tax updates and minimum wage standards can easily slip through the memory cracks. When it comes time to file taxes and finalize payroll budget, these numbers become even more critical.
Here’s why. Underpaying estimated taxes, filing late and having inaccuracies are just a couple of ways small businesses can (and have been) penalized by the Internal Revenue Service (IRS). For small businesses operating on a small business budget, the last thing they can afford both from a mental and financial standpoint is to pay these penalties just for overlooking some aspect of taxes.
Of course, hiring a professional is one way to deter this penalty possibility, but even before that, a great place to start is by getting familiar with state-specific regulations (especially the ones that were updated this year).
This infographic displays some notable changes this year that could affect small businesses. A majority of the federal guidelines remain unchanged from 2015, including the Social Security taxable wage base per employee, pension plan limits and the Federal Unemployment Tax Act (FUTA) taxable wage base per employee.
Keep this infographic as a resource to ensure planning for the rest of 2016 is a breeze!
The original version of this post can be found here.
