New business owners have many things to do to get ready for opening day. One of the most important items on the list is planning for taxes. If you expect to have employees, you will need to make sure the necessary accounts are in place to comply with Pennsylvania’s withholding tax requirements.
Employers are required to withhold Pennsylvania personal income tax on all compensation paid to Pennsylvania residents, as well as on compensation paid to non-residents, unless the non-resident lives in New Jersey, Maryland, Virginia, West Virginia, Ohio, or Indiana. For employees who live in one of the exception states, employers must withhold and remit those states’ tax withholdings to the other state.
Pennsylvania businesses must also register for unemployment compensation insurance tax. Then there’s the sales tax issue, if you are a retail business.
The good news is that businesses can file and pay business tax returns and money owed through e-TIDES, Pennsylvania’s Electronic Tax Information and Data Exchange System. Alternatively, businesses can pay by phone using TeleFile, as well as through some third-party software providers.
Here’s a tip for start-up businesses — when choosing an accounting or bookkeeping software, consider whether you would like to be able to file tax forms and remit tax payments through your accounting or bookkeeping software. If this is a feature you must have, check with the software provider before you buy to make sure they provide a tax payment platform.
For more information about starting a business, finding the right tax professional for you, or for help with other matters related to managing your business, the attorneys at the Scolieri Law Group, P.C. can help. Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can take care of the details for you every step of the way. Contact us today at (412) 765-0546 or via email at firstname.lastname@example.org.