The IRS is tired of processing tax returns. While this may not be entirely true, the proposed changes to payroll withholding and their impact to the small business owner, make it feel that way.
The IRS recently announced that they are changing the W-4 form. This is the form that employees use to select the amount of taxes they want withheld from their paychecks. Testers state it’s more like filling out a tax form than what the W-4 has traditionally been.
The goal of all of this is to have your withholding and your tax liability match up. The government wants to get out of the business of offering refunds. Unfortunately, these changes are always most difficult on the hardest working people, the small business owner.
Most small business owners have unique challenges just filing their taxes. If calculating payroll withholding becomes just as difficult as filing your annual taxes, the task will seem unending. This is one of the many reasons that small business owners must stay current on changes in the IRS law.
Watch this space. We will post the latest information and its impact, as it becomes known. We will work with you to ensure that you stay compliant with the law. Remember, at Sound Accounts, our strength is your numbers.
