0:02 3 Tax Recordkeeping Tips for Employers.
0:42 Some of the expenses you pay during the year might qualify for money-saving tax credits or deductions come tax time.
0:49 If you organize your tax records now, you’ll make tax filing easier and faster when you do them next year.
1:01 Here are 3 tips from the IRS on tax recordkeeping for employers.
1:08 Number 1: Save certain business records.
1:15 Save the following business records: gross receipts, amounts paid for purchases, amounts paid for business expenses, annual depreciation and gains or losses when selling assets.
2:00 Such records include: cash register tapes, bank deposit slips, receipt books, purchase and sales invoices, credit card receipts, sales slips, canceled checks, account statements and petty cash slips.
2:17 Keep employment tax records.
2:20 The following information should be available for IRS review.
2:27 Employer ID number, amounts and dates of all wage, annuity, and pension payments, amounts of tips reported, and fair market value of in-kind wages paid
2:42 Names, addresses, SSNs and occupations of employees and recipients.
2:53 Any employee copies of Form W-2 that were returned to you as undeliverable, and dates of employment.
2:56 Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third-party payers made to them.
3:07 Copies of employees’ and recipients’ income tax withholding allowance certificates.
3:13 Dates and amounts of tax deposits made.
3:18 Copies of returns filed, records of allocated tips, and records of fringe benefits provided, including substantiation.
3:27 Number three: store and organize your records.
3:31 Keep all employment-related tax records for at least 4 years after the tax is due, or after the tax is paid, whichever is later.
3:50 It’s a good idea to keep records organized and in one place.
4:09 Business owners should review IRS Publication 583, Starting a Business and Keeping Records.
4:21 Video and audio files explaining recordkeeping requirements are also available at http://www.irsvideos.gov/.
4:25 Download Employer Recordkeeping Guide at http://offers.hr360.com/employer-recordkeeping-guide