Small Business Tax Filing Made Easy

With tax preparation season upon us, we share some guidance on preparing your taxes accurately and on time.

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Author By Team Roll on February 14, 2022
Reading Time 2 min read
 
 

It’s that time again: tax-season preparation. Small businesses across the country are getting ready for the coming months, gathering 1040s, 1099s and W2s for themselves and their employees.

Getting your taxes done

Here’s how to get your taxes in order for 2022. 

1. Gather all your materials 

In order to make sure you report taxes accurately, gather all your records in advance. You’ll need a copy of all your income and expenses, as well as information on how you’ve paid yourself and your people. 

Roll will do all this for you, right in the app. If you’re working manually, you’ll need to make a few calculations. 

2. Choose the right form

The form you file with the IRS will depend on the kind of business you’ve set up. Many small businesses are registered as sole proprietors or LLCs, so they can file their business taxes as an addition to their personal taxes. 

That form is known as Schedule C. 

If you're operating as a corporation, you’ll need to prepare a separate corporate tax return. That’s done with Form 1120. 

3. Fill out your form 

If you’re registered as a sole proprietor or LLC, tax filing is actually pretty easy. Schedule C is only two pages long, and it lists all the possible expenses you claim against your income. 

Simply subtract your expenses from your income and you’ll arrive at your net profit or loss. You can then enter that number on your personal income tax form. 

If you’ve registered as a corporation, Form 1120 is a little more complicated. See the instructions for the form from the IRS for more guidance. 

4. File Taxes with Roll

For next year's taxes, consider Roll. If you sign up now, you’ll not only get to run payroll in under a minute: Roll offers full-service tax filing as well, gathering the information you need to file your taxes in 2023. W2s and other forms are done and processed digitally without needing to go to a bank or a physical location. 

There are many other options for filing your taxes, of course, including a range of paid software that will submit electronically on your behalf. 

You can of course go the paper route, completing your taxes after printing out the forms and mailing them to the IRS. 

Before you go, learn the new tax rule for small businesses
There’s something all small businesses need to know when prepping their 1099s for filing in 2023, for the 2022 tax year – and we can make sure you're ahead of the curve. There’s been a change to the American Rescue Plan Act of 2021 that affects almost all small businesses and freelancers.

Starting in 2022, small businesses and freelancers that use third-party digital payment services, such as Venmo or Paypal, are required to report any and all transactions that total $600 or more. This is something small businesses should already be reporting during tax prep season, but now the IRS will look into any businesses to look for those unreported payments. 

Even those who sell on platforms like Etsy or ebay can expect to receive a 1099-K form from those digital payment services used for transactions.  

Make payroll and tax filing easy with Roll

If you have any questions when running your yearly reports or payroll, as a Roll by ADP customer - you have access to 24/7 Live Chat Support to help you every step of the way.

If you haven’t tried Roll yet,  get a free trial and be on your way to a less stressful tax season next year! 


Small Business • Tax Filing
 
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