Inspirational and Empowering Child Care Business Owners To Build Successful Child Care Businesses

Payroll and Tax Mistakes to Avoid – by Benita Tyler

12 13 10

 When it comes to classifying the people who work for you it is important to know how to properly classify payments for payroll and keep your company in tax compliance. Here are a few things that will help you when it comes to reporting payroll at tax time.

 Employees

  1. An employee may be hired to work in your company on a full or part-time basis. You set their work hours, provide workspace and resources to carry out their assignment and have direct control over how they should perform the work. Assistants, teachers, and food service workers are examples of employees in a child care business.
  2. Having employees on staff means that you will be responsible for meeting Federal, State and Local reporting requirements. A payroll provider or accountant can assist in setting up income tax withholdings, completing payroll and filing payroll tax forms.
  3. Be sure to issue Form W-2 Income Tax Withholding to your employees at year-end. This document summarizes the gross earnings and income taxes that were taken out each pay period. File copies with the IRS, State, and local tax authorities, if applicable.

 

Contractors

  1. A contractor is hired to work on a project by project basis that has a start and an end date. Contractors provide their own tools and set their work hours. Most are business owners who have other clients in addition to the work they do for you. Some examples of contractors are art, dance, or language instructors that provide special classes for your business.
  2. When hiring contractors have them complete a form W-9 Request for Taxpayer Certification and Identification Number. This will provide the information that you will need for tax reporting.
  3. Issue a Form 1099-Miscellaneous Income to summarize the total of contractor payments for the year. Mail a copy to your contractors and tax authorities.

 

Payroll Deduction 

The employer payroll taxes that you incur are tax deductible. Be sure to provide the amounts to your accountant so that they can include them when filing your income tax return.

 To learn more about income tax reporting requirements for employers, check out Publication 15, Circular E, Employer’s Tax Guide here.

 About the Guest Writer: 


 

 

 

Benita Tyler

The Financial Messenger. President of TBS USA Accounting and Tax Advisors

Creator of the Position to Prosper System™
btyler@tbsusa.com
(313) 377-1080

To receive your FREE Tax Organizer and advice on tax issues and growing profits, visit http://www.tbsusa.com/

Category:

Administration, Taxes

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Turn Your Child Care Business into a Festive Wonderland of Holiday Cheer!

12 05 10

Capture the attention of the Parents and the Children this Holiday Season!

 

Recently, I stopped by a day spa in Ellisville, Missouri.  I was so impressed at how the owner took the time to wrap gift boxes and place them through out the spa. It felt like Christmas in that business and I really enjoyed looking at the gift boxes. In fact, I was so impressed with how the decorations made me feel, I decided to buy empty boxes, wrapping paper and ribbon to add a more festive look to my childcare business.

According to Christmas Decor design consultants, there are five reasons to decorate your business for the holidays and they are as follows:

  • Trigger Holiday Shopping
  • Highlight Your Business
  • Attract and Retain New Customers
  • Enhance Employee Morale
  • Improve Grand Openings

                                                 

Here are some Fun and Festive Decorating ideas for your Child Care Business:

1. Purchase an artificial tree and invite the children to decorate it

2. Invite the parents to donate gift boxes, wrapping paper and ribbon. Once the boxes are wrapped place them throughout your childcare business.

3. Hang a wreath on the outside of your door where the parents and children enter.

4. Hang Christmas Cards around your business

5. Play soft Christmas Music throughout the day

6. Add Cinnamon scented pine cones near the sign-in table, it’s a wonderful smell at Christmas Time

7. Hang a Stocking for each child and staff member. Invite staff members to secretly bring gifts for one another.

8. Add a Christmas theme to your bulletin boards

9. Hang garland along the playground fence and add red bows

I hope that you have a very festive and Merry Christmas! I look forward to reading your comments about this post and please feel free to share your Christmas Decorating ideas.

~Shiketa Morgan

Category:

Child Care Center, Events, Home Daycare

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