Episode 6: Payroll & Taxes - What Every Small Business Owner Should Know
Practical insights on payroll, sales tax, and local taxes to help small business owners stay compliant and keep cash flow steady.
Managing payroll and taxes is one of the biggest responsibilities for small business owners. It is not just about paying employees on time. It is about staying compliant, managing cash flow, and avoiding costly penalties.
In Episode 6 of The Accounting Edit podcast, Leah from Orca Accounting and I dive into the essentials of payroll and taxes for service based businesses. We cover everything from payroll processes and tax responsibilities to the importance of proactive planning.
Payroll Basics Every Owner Should Understand
Payroll is more than just wages. It includes:
Employee wages and contractor payments
Benefits and deductions
Federal, state, and local tax withholdings
Getting this right ensures your business stays compliant and your team gets paid accurately.
Employees vs Contractors: Why Classification Matters
Misclassifying a contractor as an employee or vice versa can create expensive tax issues. Understanding the difference is critical to avoiding penalties and ensuring you are meeting your legal responsibilities.
Simplifying Payroll with the Right Tools
Payroll software can save time, reduce errors, and keep your tax filings on track. The right system ensures withholdings are calculated correctly and compliance deadlines are met without stress.
Sales Tax and Local Taxes
Sales tax rules vary by state and jurisdiction which can make compliance tricky. Even if your primary service is not taxable, any digital or product component may be. In addition, local taxes can also apply depending on where you operate. Staying updated helps you avoid unexpected liabilities.
Why Tax Planning and Cash Flow Go Hand in Hand
Proactive tax planning prevents surprises. We recommend:
Setting aside funds monthly for quarterly tax payments
Tracking cash flow closely to cover tax liabilities
Staying ahead of filing deadlines to avoid penalties
Continuous Education is Key
Tax laws are always evolving. As a business owner, having a trusted advisor in your corner helps you stay compliant while focusing on growth.
🎙 Listen to Episode 6: Bookkeeping - Payroll & Taxes
Connect With Us
theaccountingedit.com
Aminder Mann, CPA
Website: sequoia-cpa.com
Instagram: @sequoiacpa
LinkedIn: Sequoia CPA
Leah McCool
Website: orca-accounting.com
Instagram: @orcaaccounting
LinkedIn: Leah McCool
Keywords: payroll, taxes, accounting, business, compliance, tax responsibilities, cash flow, sales tax, payroll processes, accounting podcast, bookkeeping
Ready to Simplify Payroll and Taxes for Your Business?
If payroll and taxes are taking up too much of your time or you are worried about compliance, Sequoia CPA can help. We partner with service based small businesses to streamline payroll, stay ahead of tax deadlines, and manage cash flow with confidence.