How To Eliminate Tax Errors With eFiling
There’s nothing like a tax error to derail your day… or maybe even your year. But here’s how to eliminate tax errors from your business.
However, with eFiling, you may be able to reduce your company’s tax errors by 19%. Businesses that use paper tax forms experience a 20% error rate on average, but when filing online, that number drops to just 1%. It almost sounds too good to be true!
It’s not, and many employers are switching from time-consuming, traditional paper form filing to streamlined W-2 and 1099 cloud processing. In fact, eFiling is becoming the preferred choice for small businesses.
The Benefits of eFiling
Electronic filing, or e-filing, is the online transmission of required tax information directly to the IRS or Social Security Administration, instead of completing and submitting traditional paper tax forms and delivering them by mail.
E-filing is a popular way to file 1099s, W-2s, and other business tax forms since everything is done online…there’s no need for paper forms or software. eFiling provides three cloud processing benefits.
The first of its many benefits is that it’s accurate. The complicated calculations are performed by the software, data entry errors are uncovered, and mistakes are avoided. Second, it’s convenient. Rather than installing software or handling large amounts of paperwork, eFiling entails just a few prompts from your computer. Finally, it’s helpful: those business owners who file online like the regular dialog during the e-file process, which includes email alerts when the IRS and/or SSA receives filings and the ability to check the status of a specific filing any time from any computer. You have control over the process without getting your hands dirty!
Note that eFiling doesn’t mean that there’s no paperwork: recipients (i.e., independent contractors and employees) still must receive a paper copy of the W-2 or 1099 or opt-in to receive an electronic version. As such, eFiling with government agencies is only half of the process. The other part is printing and mailing copies to recipients, but many companies outsource this task to a third-party that offers an all-inclusive print, mail, and e-file service.
Advantages of Using a Third-Party Filing Service
Many businesses choose to use an e-filing provider that can also print and mail recipient copies. This route is attractive to business owners for the following reasons:
· Savings. This option can save you money and that includes your labor costs. Those filing online who use a one-stop tax reporting vendor save on payroll associated with having an employee manually print and mail forms.
· Time. It can save you time because you enter your information online once, and the vendor does the rest. The gives you more to devote to the critical needs of your business.
· Security. When you print 1099s and W-2s on your office printer and ask employees to take care of the mailing, you open your company up to confidential issues. Remember, these documents contain sensitive information like annual salaries and Social Security numbers. If you use a third-party, you avoid these concerns.
Contact a Business Expert
Questions about your business? Perhaps you’re thinking of selling. This link will provide a simple summary of the steps. If you would like more information, then this link will allow you to buy and download a copy of my book called Successfully Sell Your Business.
Andrew Rogerson is a business expert and has worked with business owners and those seeking to buy and sell businesses in cities throughout the Sacramento Region, like Rocklin, Citrus Heights, Rancho Cordova, Folsom, Elk Grove, Roseville, Davis, El Dorado Hills, and Cameron Park. Andrew can help you with deciding on an appropriate opportunity in the Sacramento region, competitive intelligence, financing, in addition to providing answers to all your questions.
Take the time to speak with Andrew about your business. Feel free to visit our website and read about the services we provide. You can also get in touch with Andrew via email or call him at (916) 570-2674.