The Small Business Tax Help Blog

Question: How can we withhold employee’s income tax before we complete the registration with North Carolina State? ?

We are a very simple nonprofit organization. We began to file Articles of Incorporation last year, and we got tax exempt status for both Federal and State tax purpose this past July. We received Federal Tax Deposit Coupon this past August, so we began to withhold the income tax from August. My question is that if we have made a mistake for not withholding income tax in the first 7 months in 2008. If so, how can we correct this mistake? By filing adjustment for Form 941? Or by giving employee Form 1099 for first 7-month payment? Also, to my understanding, we don’t subject to Federal Unemployment (FUTA) tax because our employee’s total wages is $1,000 or less in year 2008. Is that correct?

Answer: Get a Tax Withholding guide and hang on to the money until your registration is completed.

Summer Tax Tips

NEW The Internal Revenue Service wants to remind you that summer is a good time to consider mid-year withholding adjustments and money-saving summer tips.

Tax Withholding Increase for 2010

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