Some tips for small businesses on how to keep up to date on code changes

As many have experienced, the ongoing pandemic disrupted everyone’s day-today routines, where social distancing and using virtual tools to stay connected are the new norms. As businesses try to weather the coronavirus storm, many are looking for ways to support employees while still serving customers. Programs like the Paycheck Protection Program are helping small businesses apply for loans to keep their workers on payroll, but as businesses continue to be impacted, it is important to know how programs like these may affect taxes this year.

With more businesses transitioning to an online and virtual format to manage taxes, having a fast network and knowing where to find resources can help you file your 2021 taxes next year. In a year that has already been like no other, here are some helpful resources and tips for small businesses on how to keep tax information organized throughout the year and how to stay on top of any new tax codes that may apply to your business.

PPP and other similar programs may impact taxes, so it is important to stay up to date on the tax code. The Small Business Administration maintains a tutorial on navigating the tax code and staying up to date on your tax responsibilities as a business owner.

The SBA has a helpful guide on choosing the right business structure if you are just starting your business this year. Depending on which state your business will operate in, you should consider the small business tax rates, which are available at the Tax Foundation.

To learn more about these changes and the impact they may have on your business, visit the IRS website, which has more information about the Affordable Care Act. There are also additional details on the Small Business Health Care Tax Credit and Coronavirus Tax Relief for a variety of business entities.

If your taxes have not been affected by the PPP or similar programs, using the latest smartphone app is a safe and time-saving way to file your taxes next year. Using a secure app such as TurboTax, allows users to take a picture of their W-2, answer a few simple questions and e-file securely without ever having to leave your office.

You can also try IRS2Go to check your refund status or make payments, while Expensify can categorize your business expenses, receipts and quickly create useful expense reports.

If you don’t feel comfortable managing your business’s taxes on your own, schedule a virtual meeting with an experienced tax professional. Using popular video chat options like Zoom or Google Duo is an easy and convenient way to ensure your business remains penalty-free while also practicing good social-distancing measures.

We know 2021 won’t be an easy year for many businesses, but these early suggestions can help ease the burden of filing taxes next year.

Tabatha McKay is area vice president/general manager for UScellular in New England.