Quarterly tax filings are essential for small businesses in Minnesota to remain compliant and avoid penalties. Here’s a breakdown of what you need to know:
What Taxes are Due Quarterly?
- State and Federal Estimated Income Tax Payments: Estimated income tax payments are required to cover income not subject to withholding.
- Forms and Calculation: Federal taxes use Form 1040-ES, and Minnesota uses Form M14. Calculate by estimating annual income, deductions, and credits, then divide the total tax owed by four.
- State Unemployment Insurance: This tax funds unemployment benefits for workers.
- Forms and Calculation: Use Minnesota UI Tax Forms. The calculation is based on employee wages and the current unemployment tax rate.
- Sales and Use Tax for Some Businesses: Businesses selling goods or taxable services must collect sales tax and remit it to the state.
- Applicable Businesses: Retailers, manufacturers, and certain service providers.
- Forms and Calculation: Use Form ST-1. Calculate based on the total taxable sales and the applicable sales tax rate.
What Taxes are Due Monthly?
- FICA: Federal Insurance Contributions Act tax includes Social Security and Medicare taxes.
- Forms and Calculation: Use IRS Form 941. Calculate based on employee wages with a fixed percentage for Social Security and Medicare.
- State Withholding Tax: Employers must withhold state income tax from employee wages.
- Forms and Calculation: Use Form MW-1. Calculate using Minnesota withholding tax tables based on employee earnings and withholding allowances.
Working with a Minneapolis CPA
- When to Engage: Engage a CPA when starting your business, facing complex tax situations, or needing help with compliance and strategy.
- Information Needed: Provide financial records, previous tax returns, payroll details, and business receipts.
- Services Provided: A CPA offers tax preparation, planning, compliance assistance, and strategic financial advice.
Working with Haworth & Company, Ltd.
Haworth & Company, Ltd. specializes in helping small businesses in Minnesota manage their tax obligations. Our expert CPAs ensure accurate and timely filings, allowing you to focus on growing your business. Contact us for comprehensive tax and accounting services tailored to your needs.
Disclaimer: This blog content is for general informational purposes only, should not be considered professional advice, and does not establish a client relationship. Haworth and Company is not liable for the accuracy of this information or the content of external links. Please use this information at your own risk, ensuring it suits your specific needs, and consult with a certified tax professional for your own personalized guidance.
