Know Your Terrain: Navigating State and Local Tax Laws
Tax codes can be, well, taxing. And if federal taxes for small business weren’t complicated enough, every small business also has to deal with state and local tax compliance. With the right guidance and knowledge, your business can avoid some common dangers and even save money in the long run.
While almost every state administers a business or corporate income tax, all 50 require you to collect workers’ compensation insurance and unemployment insurance taxes. There are differences, however. For instance, New York (among other states) requires temporary disability insurance. The IRS has developed a convenient guide for directing you to the right source in your state to make sure your business is following the rules.
Local taxes are even trickier. Sometimes, businesses fall geographically within multiple municipalities, such as both a county and a city. Merged governments even have a city-within-a-city municipalities. Often local tax rates change more frequently than state or federal rates.
At APS, our system fully integrates the tax requirements your business needs in one easy-to-use platform. Let us know how we can help you plot out your compliance course today.