Small business owners are aware that timely tax payments are required. It is essential to remember that there are different deadlines depending on the type of tax you are filing. These deadlines are related to your Social Security, Medicare, and withheld income taxes.
Pay-as-you-go tax deadlines
There are several important tax deadlines in the year 2024. This includes the last day to file a tax return and the first estimated tax payment of the year. However, these are only some of the significant tax deadlines.
Whether you are an individual or a business owner, your taxes will be due on a specific date. The amount of taxes you are liable for may differ, depending on your type of business. You can either pay your taxes in one lump sum or pay them in four installments. If you fail to pay your taxes, you could incur penalties.
Estimated taxes are calculated using the IRS’s annual schedule. Each estimated tax is calculated in proportion to your taxable income. Unlike actual taxes, which are generally paid in full at the end of the year, estimated taxes are due by dates. These dates can vary depending on the nature of your business, but the following are general guidelines.
For individuals, estimated tax payments are due on April 15, June 15, September 15, and January 15. It is usually the case that estimated taxes are paid in three installments, though they are only sometimes three months apart.
Businesses can also pay their taxes in quarterly or annual installments. Tax extensions are also available for companies and individuals, which gives them more time to file their taxes. Some companies and individuals can even request six-month extensions.
Form 7004
If your business needs more time to complete your tax return, you can request an extension of up to six months by filling out Form 7004. The IRS grants this automatic extension to most businesses. However, there are some exceptions.
Form 7004 is used by corporations, partnerships, S corporations, and multiple-member LLCs to request an extension of time to file their tax returns. It can be filed electronically or on paper. You can also find the due date for your form on the IRS website.
Form 7004 is a two-part form that must be completed before the tax return due date. It is requesting an extension. To submit Form 7004, you must include the appropriate code, employer identification number, and principal office address. The deadline for companies filing Form 7004 for an extension on Form 1120 is April 15.
Before completing Form 7004, you must estimate your tax liability. The amount you will owe varies depending on the type of tax return you are requesting. Lines 5 and 6 are for entering the amount you expect to owe. The balance owed must appear on lines 8 or 9. In addition, you must enter a tentative total tax for the year. This estimated tax is what you think you will owe for the year, including estimated payments or refundable credits.
Social Security, Medicare, and withheld income tax
Regarding taxes, it’s no secret that the IRS requires employers to report FICA (Social Security, Medicare, and withheld income tax) every quarter. If your business doesn’t need to file estimated taxes, you can take advantage of the new CARES Act and defer these taxes to the following year.
To comply with the IRS, employers must submit Form W-2 for each employee. This form shows the amount of social security, Medicare, and withheld income tax that was withheld from your employees’ paychecks. You may also be required to report any additional payments made to your employees, such as tips.
The Social Security Administration (SSA) maintains a record of the total wages paid to your employees. It compares the wages reported on Form W-2 to its descriptions of social security numbers and wage earners. Discrepancies are resolved. An SSA representative will contact you if you have any issues.
Similarly, a self-employed person must report their earnings on Form 1040. This is the same information that the SSA uses for benefit calculations. There are different rules for paying an independent contractor or an employee who receives a tip.
As with all taxes, there is a limit to the amount of social security and Medicare tax you can claim. This is known as the taxable maximum. Currently, this amount is $147,000. But it is subject to change every year.
The last day to file corporate and business tax returns is coming soon. The tax season started on January 24 and this wasn’t unusual considering the start dates of the previous tax seasons.
The same also applies to the tax filing deadline for individuals and corporates. The typical deadline to file taxes is usually April 15, but it’s different in 2025 – not so much, though.
The deadline to file taxes for corporates and businesses is April 18. It would’ve been April 15 if the deadline was on a Friday, but the Internal Revenue Service moved it to Monday, giving three more days to taxpayers to file their federal income tax returns.
Option to file for an extension
File a tax extension if you’re not able to prepare and file your federal tax return by the April 18 deadline. Doing this will give you about six more months to file your corporate tax return. You will then have until October 15 to file your business tax return, like the 1120.
Learn more about filing an extension for Form 1120.
Difference between filing extension for business and individual tax return
The main difference when you file a tax extension for a business tax return is the tax form you fill out to request it from the Internal Revenue Service. For requesting tax extension for your individual income tax return, use Form 4868. For business returns, you will need to use Form 7004.