Basic Record Keeping for Small Businesses
Registering for Taxes
- Federal ID Number
- If you are a corporation
- If you have employees
- State Sales Tax and Withholding
- State Unemployment
- County "Doing Business As" License
Tax Requirements
- Sales tax and State Withholding due monthly or quarterly, depending on volume
- Federal Withholding and Medicare and Social Security due monthly or quarterly, depending on volume
- State Unemployment due quarterly
- Federal Unemployment due annually
Employee Files
- Signed Employment Application
- Include "At Will" statement
- W4 Federal Withholding
- MI4 State Withholding
- I9 U.S. Resident status
Annual Tax Returns
- Schedule C (if sole proprietorship) due with Personal Tax Return April 15
- Form 1120 or 1120-S (if corporation) due March 15 or 75 days after year end
- Form 1065 (if partnership) due April 15 or 105 days after year end
Accounts Payable
- Consider setting up 3 files by due date
- File bills when mail is received
- Accordion files work well for this
- Review weekly for bills that are due
Paid Bills Files
- Set up alphabetically by major vendors
- Keep "Miscellaneous A", "B", etc for others
- Mark in each statement or invoice the date paid, check number, and amount paid
- File by vendor in "Paid Bills" file drawer
Payroll Files
- Keep time cards by pay period
- Payroll reports of monthly payroll
- Copies of 941's (Federal Withholding and Fica)
- Copies of unemployment Wage reports
- Sales tax and withholding return
Year End Payroll Requirements
- Issue W-2 to all employees by Jan 31
- Copy of all W-2's to Social Security office with W-3 (cover form) by Feb 28
- Form 1099 to Independent Contractors
- Copy of 1099 to IRS with Form 1096
- Annual Sales tax and Withholding return, along with copies of W-2's to State of Michigan
- Renew employee's W-4 for the new year
Things to Keep (for a long time i.e. 7 + years)
- Bank statements
- All tax filings and returns
- Expenses and travel records (invoices received)
- Accounts receivable records (invoices sent)
- Payroll records
- Sales/Revenue records
Congradulations! You have just completed the money section of your business planning. Click the U.P. County Facts tab in the right hand column to continue.
Congradulations! You have just completed the money section of your business planning. Click the U.P. County Facts tab in the right hand column to continue.
Copyright © 2005 by Northern Initiatives
please contact info@bizinfonetwork.com with any questions or comments
(906)228-5571 ~ (800)254-2156 ~ PO Box 7009, Marquette, MI 49855
please contact info@bizinfonetwork.com with any questions or comments
(906)228-5571 ~ (800)254-2156 ~ PO Box 7009, Marquette, MI 49855