Last updated: September 29, 2026
In short: Hillside Accounting Services handles the accounting a small business needs from one office at 167-13 Hillside Ave, 2nd Floor, Jamaica, NY 11432: payroll and year-end W-2s and 1099s, New York sales tax registration and returns, bookkeeping, corporation, partnership and self-employed tax returns, and help setting up a new business and choosing its structure. You can work with us in English or Bengali (Bangla).
Payroll
Running payroll is more than writing paychecks. Federal and New York income tax, Social Security and Medicare come out of every check and are deposited on a schedule, and the business files quarterly and annual returns on top. We run payroll for small businesses and keep track of these filings:
| Filing | What it covers | When it's due |
|---|---|---|
| Federal tax deposits | Withheld income tax, Social Security and Medicare | By the 15th of the next month, or twice a week, depending on your deposit schedule |
| Form 941 | Quarterly federal payroll return | Last day of the month after each quarter |
| Form NYS-45 | Quarterly New York withholding, wage reporting and unemployment insurance, filed online | April 30, July 31, October 31 and January 31 |
| Form 940 | Annual federal unemployment (FUTA) tax | January 31 |
| Forms W-2 and W-3 | Each employee's wages and withholding for the year | January 31; for 2026 wages, February 1, 2027 |
A due date that falls on a weekend or legal holiday moves to the next business day. Sources: IRS employment tax due dates; New York State Department of Labor: NYS-45.
A few 2026 numbers employers ask about most:
- Social Security tax applies to the first $184,500 of each employee's 2026 wages, at 6.2% each for employer and employee; Medicare is 1.45% each on all wages (IRS Publication 15, 2026).
- New York's minimum wage in New York City is $17.00 an hour from January 1, 2026 (New York State Department of Labor).
- The 2026 New York Paid Family Leave employee contribution is 0.432% of gross wages, up to $411.91 for the year (New York Paid Family Leave).
- For 2026, W-2s also report tips (box 12, code TP, with the tipped occupation code in box 14b) and qualified overtime (box 12, code TT), which employees need for the new federal deductions (2026 W-2 instructions).
1099s for Contractors
For payments made after December 31, 2025, a business files Form 1099-NEC for a contractor only once it has paid them $2,000 or more in the year, up from $600. For 2026 payments, the forms are due to the IRS and to each contractor by Monday, February 1, 2027. A business filing 10 or more information returns in total, counting W-2s and 1099s together, has to file them electronically, and the IRS's older FIRE system shuts down on November 19, 2026, leaving the free IRIS portal (IRS instructions for Forms 1099-MISC and 1099-NEC; IRS: information return e-file system transition). The easiest way to be ready is to collect a Form W-9 from every contractor before you pay them.
New York Sales Tax
If you sell taxable goods or services in New York, even from home or only once a year, you must register with the New York State Tax Department at least 20 days before you begin business. You register online through New York Business Express. The state then sends a Certificate of Authority, which you display at your place of business; you can't make taxable sales until you have it (New York Tax Department: how to register for sales tax). We can register your business and file its returns.
Most small businesses file quarterly. New York's sales tax quarters are offset from the calendar, and each return is due 20 days after the quarter ends, moved to the next business day when that date falls on a weekend:
| Sales tax quarter | Return due |
|---|---|
| September 1 to November 30, 2026 | December 21, 2026 |
| December 1, 2026 to February 28, 2027 | March 22, 2027 |
| March 1 to May 31, 2027 | June 21, 2027 |
| June 1 to August 31, 2027 | September 20, 2027 |
Businesses that owe $3,000 or less a year can file annually, and those with $300,000 or more in taxable receipts in a quarter file monthly. A return is due even for a quarter with no sales. The combined sales tax rate in New York City is 8.875% (New York Tax Department: sales tax filing requirements; Publication 718).
Business Tax Returns
We prepare federal and New York returns for the way your business is set up:
- Sole proprietors and single-member LLCs report business income on Schedule C with their personal return, due April 15, 2027 for 2026.
- Partnerships and multi-member LLCs file Form 1065, due March 15, 2027, and give each partner a Schedule K-1.
- S corporations file Form 1120-S, due March 15, 2027, and C corporations file Form 1120, due April 15, 2027.
Businesses in the city may also owe New York City business taxes. The unincorporated business tax, for example, is 4% of taxable income allocated to the city, and an unincorporated business has to file once its gross business income passes $95,000 (NYC Department of Finance: unincorporated business tax).
Starting a Business
We help new businesses get set up right from the start. The first decisions:
- Choosing a structure. A sole proprietorship, LLC, partnership or corporation each changes how you're taxed and what you file. As the business grows, the right structure can change too.
- An Employer Identification Number (EIN). The IRS issues EINs online in minutes and never charges for one, so avoid websites that do (IRS: get an EIN).
- Publishing a new LLC. Within 120 days after its articles of organization take effect, a New York LLC publishes a notice in two newspapers chosen by the county clerk for six weeks in a row, then files a Certificate of Publication with a $50 fee. An LLC that doesn't publish has its authority to do business suspended until it does (New York Department of State: forming an LLC).
- S corporation election. An LLC or corporation that wants to be taxed as an S corporation files Form 2553 no more than two months and 15 days after the start of the tax year the election is for, or any time in the year before (IRS instructions for Form 2553).
- Sales tax registration, at least 20 days before you start selling, if you sell taxable goods or services.
Getting ready for year-end? See the small business tax prep checklist.
Common Questions
When do I need to register for New York sales tax?
At least 20 days before you begin making taxable sales in New York. You register online through New York Business Express, and you can't make taxable sales until you receive the Certificate of Authority, which you display at your business.
When are W-2s and 1099-NECs due for 2026?
Both are due to the IRS or the Social Security Administration and to your workers by Monday, February 1, 2027, because January 31, 2027 falls on a Sunday.
Do I still send a 1099-NEC to a contractor I paid $600?
Not for 2026. For payments made after December 31, 2025, the Form 1099-NEC threshold is $2,000 a year. Some payments, such as gross proceeds paid to an attorney, still use $600.
Should my LLC be taxed as an S corporation?
It depends on what the business earns, what you pay yourself and the payroll costs that come with a salary. We can run the numbers with you. To elect, Form 2553 is due no more than two months and 15 days after the start of the tax year it's for, which is March 15 for a calendar-year business.
Can you help me start a new business?
Yes. We help you choose a structure, get an EIN, register for sales tax and set up your books, in English or Bangla.