A Practical Guide to Filing and Paying Business Taxes
Business taxes aren’t one thing — they’re several obligations on different calendars to different agencies. Here’s the map, from federal to Philadelphia.
Federal
Income tax on profits (via your personal return for pass-throughs, or a corporate return), self-employment tax for owners of pass-throughs, quarterly estimated payments, and — with employees — payroll taxes on their own strict deposit schedule. The IRS Small Business Tax Center indexes all of it.
Pennsylvania
State income tax, employer withholding, and — for sellers of taxable goods and some services — sales tax, all administered by the PA Department of Revenue. New Jersey operations add that state’s parallel set.
Philadelphia
Operating in the city adds BIRT, Net Profits Tax for unincorporated businesses, and wage tax on employees — the layer most often missed by businesses new to the city.
The Habits That Make It Painless
Clean monthly books, one tax calendar, quarterly reviews, and filing even in loss years (a properly reported loss preserves its future value — see our tax services page for why).
Frequently Asked Questions
What happens if I miss an estimated payment?
Underpayment penalties accrue — annoying, not catastrophic. Catch up at the next quarter and adjust; a mid-year projection prevents repeats.
Do I file if my business lost money?
Almost always yes for business returns — and you want to, since the reported loss can offset other income now or later.
Which Philadelphia taxes apply to me?
Operating in the city generally means a Commercial Activity License plus BIRT; unincorporated businesses add Net Profits Tax; employers add wage tax. The city’s Revenue Department administers all three — we register clients as part of onboarding.
Can I handle all this myself?
Mechanically yes; the risk is what you don’t know — missed elections, missed city registrations, misclassified workers. Those cost more than professional fees.
When should I get help — before or after a problem?
Before, obviously — but after works too: notices, late filings, and penalties are daily work for us. Contact us either way.
Questions about your situation? Contact us or call (215) 914-6929.