The 2021 tax filing season will be a normal season than last year since we are slowly moving out of the pandemic situation. However, there are still certain things to look out for. 

The 2021 Tax Checklist for Small Businesses

Whether you have launched your start-up this year or you are a seasoned entrepreneur, your business should comply with many types of federal taxes. The tax filings that are required depend on a variety of factors such as your domain industry, number of employees, annual revenues, etc. 

1. Income Tax 

If you are a business or a self-employed individual, you are required to submit your estimated tax payments on a quarterly basis and also file an income tax return on an annual basis. Filing dates depend on whether you operate a sole proprietorship, partnership, corporation, or S corporation.

Filing Date Deadlines

Sole Proprietorship and Self Employed Individuals – April 15, 2021.

Partnerships and S Corporations – March 15, 2021

Corporations – Varies as per the corporation’s resolutions.

These state income tax return filing dates may vary from one state to another and check with your state tax collection authorities for details on the same.

2. Employment Tax

Unemployment taxes and payroll withholdings are submitted monthly or on a semi-weekly basis depending on the file status The deposits are required to be documented by the employers and year-end tax statements are to be shared with the employees. 

Withheld payroll taxes need to be paid by the 30th of April, 2021. The additional payroll taxes are to be withheld and paid by the above date.

3. Excise Tax

There are certain businesses such as manufacturers, trucking companies, retailers, etc are required to pay excise taxes. Depending on the type of industry excise taxes are either paid monthly, quarterly, or even annually. Below are the federal tax requirements:

• Form 720 applies to manufacturers, retailers, travel services, and communication companies – Quarterly Filed with due dates – April 30th, July 30th, October 29th, 2021, and January 31st, 2022.
• Form 11-C for companies paying daily wagers and Form 730 for every month.
• Form 2290 for companies operating heavy vehicles plying on the highway. 

4. Corporate Income Tax

Companies may fill Form 1120 or may request an extension for six months using Form 7004 and after paying an estimated tax deposit for the taxes owed. 

Usual tax filing deadline – April 15, 2021

Extended tax filing deadline – October 15, 2021.

Deadline for filing Estimated Income Tax 2021

Form 1120-W must be used to calculate the quarterly income tax liability. For corporations the quarterly estimated income tax is to be paid by the below deadlines:

• Quarter One – April 15
• Quarter Two – June 15
• Quarter Three – September 15
• Quarter Four – December 15

Conclusion

To be able to run your business smoothly and to remain compliant with the tax authorities, you must plan your taxes in advance. Go through this piece, to go through the various taxes and their filing deadline this year!!