Corporations in America must use the 1120 tax form to report their gains and losses, among other things.

 Even though filing taxes can seem difficult at first, don’t worry—we’ve got you covered!

This article will break down the 1120 tax form, tell you who it’s for, and explain how you can file it easily. So, read on and get the answers you need!

The 1120 tax form is a form that corporations must use to find out how much they’re due in business tax or what their tax liability is.

 It’s an Internal Revenue Service (IRS) document that allows companies to report their gains, losses, credits, deductions, and, most importantly, income.

Because of its purposes, many people like to call the 1120 tax form “U.S. Corporation Income Tax Return.”

Still, there are different types of 1120 forms for different types of organizations. Check out the table below for details:

Essentially, if you own a domestic corporation, even if you don’t have any taxable income, you are obligated by law to file tax Form 1120. 

The only exception are the organizations that are 

Other entities that are required to file the 1120 tax form include:

These corporations must file an 1120 tax form because it allows them to report their losses or income.

 LLC owners who have chosen to be taxed as corporations need to file both Forms 1120 and 

Foreign-owned domestic disregarded entities. 

If a foreign corporation owns a domestic disregarded entity (DE), it is required to file this form along with 

FASIT—short for “financial asset securitization investment trust”—is a tool used for securitizing non-mortgage debt with short maturities (e.g., car loans).

Businesses that are taxed as corporations. 

On top of having to file an 1120 tax form, businesses taxed as corporations must also file 

What Organizations Are Exempt from Paying Taxes?

If you meet the criteria from the list above and your corporation is located in the U.S., filing Form 1120 will be required for you. However, the 

IRS also considers certain organizations tax-exempt

If you’re wondering which other organizations are tax-exempt, you can check out the 

What Information Does Tax Form 1120 Include?

Now that you know what the 1120 tax form is and who needs to file it, you’re probably wondering what information goes into it.Typically, the form includes the following details:

Dividends, interests, and royalties earned

Keep in mind that you must be extra careful not to make any mistakes when filing Tax Form 1120.

 If there’s an error in your form, you must amend it by completing the special 

, or “Amended U.S. Corporation Tax Return,” within three years from the original return date.

On top of that, you must also attach the appropriate schedule, form, or statement if the correction you make includes deductions, credits, or income.

As a general rule, you must file the 1120 tax form by the 15th day of the fourth month after your tax year ends. 

If your corporation’s fiscal year ends on June 30, you must file by the 15th day of the third month of your tax year.

Note that the due dates that fall on Saturdays, Sundays, or any holidays are typically extended to the next business day.

To file an 1120 tax form, you must first download the document from the 

. Once you do it, you need to enter the required details—either electronically or on paper—and then either send the form in PDF format to the IRS or mail them a physical copy. 

Generally, the digital method is recommended more often, as it’s much more convenient.

Still, in case you choose to mail the IRS your Tax Form 1120, you should remember to use 

. This way, the IRS will receive your form with written proof of the mailing date. For a more detailed set of instructions, you can always check out the 

The 1120 tax form is an Internal Revenue Service (IRS) document used by corporations to report their income, losses, gains, credits, and deductions.

The form is used by farming corporations, LLC companies, corporations with FASIT interest ownerships, and many others.

If your corporation is exempt under Section 501, you don’t need to file Tax Form 1120.

The deadline for filing the 1120 tax form is the 15th day of the fourth month after your tax year ends.

You can file your 1120 tax form either electronically or via mail by using approved private delivery services.

Hopefully, this article has helped you get a better grasp of the 1120 tax form and made your tax filings a tad bit easier!

If you need help with any other legal documents, such as the 

, we’ve got your back! With our online generator, you can create these forms in no time, as well as other similar documents, including all types of 

. So, feel free to contact us and check out what we have to offer!

If you own a corporation in the U.S., you must file the annual 1120 tax form. Read this article and get the gist of this important document!

1120 Tax Form Explained [What It Is and How to File It]

Which employer doesn’t want to increase the efficiency of their staff, and which employee doesn’t want to get paid more? No one. 

Biweekly payroll is the golden middle that keeps both employees and employers happy.

Compared to weekly payrolls, it takes less time to process biweekly payrolls. Also, compared to other payroll systems, such as semi-monthly or monthly, employees receive more 

They don’t get paid as often as with the weekly payroll, nor get paid fewer times like with the semi-monthly and monthly schedules. However, deciding whether biweekly is the right payroll system to implement depends on multiple factors, such as location and staff.

This article will discuss the biweekly payroll system, its pros and cons, and its implementation.

The biweekly payroll system is based on paying employees every other week, meaning that at the end of the year, employees will have received 26 paychecks.

Biweekly payroll has many advantages, including happier employees and reduced processing work for accountants and HR staff.

There are also certain drawbacks to biweekly payroll, including complex payroll calculations, higher processing fees, and smaller pay stubs.

To calculate biweekly payroll for salaried employees, simply divide their annual salary by the number of yearly pay stubs.

For hourly employees, you must multiply their hourly rate by the number of worked hours over two weeks.

In the 2023 biweekly payroll calendar, the first payday for the year is on January 13.

employees will be paid twice per month on a regular basis

. Establishing a weekly payroll intends to provide employees with cash flow earlier than the monthly payroll, and it helps managers reduce their processing work as compared to weekly payrolls, even though the salary remains the same (the yearly pay divided by 26).

With a biweekly payroll system, your employees (or independent contractors) will get paid every other week according to a recurring date of the employer's choice

. Since the year has 52 weeks, employees receive 26 paychecks per year. More accurately, there will be ten months in which they receive two payrolls and two in which they receive three payrolls.

When starting a new job at a company that pays biweekly, employees might be caught by surprise when their first paycheck is delayed past the expected payday. That happens because it takes a few days for their financial details to get registered in the system.

The biweekly payroll model is one of the most preferred by employers. 

 of private businesses in the US have chosen to pay their employees this way. The dominating industries that rely on this payment system are:

However, in some states, the payment schedules are regulated by the state. The Department of Labor (DOL) is responsible for allocating specific requirements for each state. For example, if you’re located in the U.S., have a look at their 

What is the Difference Between Biweekly and Semimonthly Payroll?

There's a slight difference between semi-monthly and weekly paychecks. 

They both revolve around sending payrolls twice a month, but the number of pay stubs and the pay date is established differently.

Another concept similar to semi-monthly is “bimonthly.” It essentially implies two payments per month, but often people mistake bimonthly with “once every two months.” That’s another meaning for bimonthly, but when we talk about payroll, it isn’t relevant.

Use semi-monthly as a term to avoid confusion, and read about its key differences with the biweekly model before deciding:

Compared to the biweekly payroll, the semi-monthly payroll delivers payments strictly two times per month, regardless of how many weeks there are. 

Therefore, an employee receives 24 pay stubs per year, while those paid on a biweekly payroll receive 26 pay stubs per year.

Biweekly payroll has a more dynamic organization of pay stubs since there will be three pay stubs per month, twice per year. Also, there is an extra pay stub in leap years, while the number of pay stubs is consistent throughout the whole year for semi-monthly payrolls.

The pay stubs received by employees in each case are different because their numbers differ.

 For biweekly pay stubs, the payments might be smaller because there are more of them in a year (26).

Meanwhile, for semi-monthly pay stubs, the number of pay stubs into which the gross amount per year is divided is smaller (24), which means they’re slightly larger. However, the total amount one makes per year remains the same in both cases. Only the distribution time changes.

Employees who are paid on a semi-monthly basis will receive paychecks on the 15th and the 30th of the respective month.

 What raises concerns about this payment approach is the fact that when payday falls on the weekend, the pay is delayed.

Often, the pay is delivered on the preceding Friday. Meanwhile, with bi-weekly pay stubs, employees are paid on the same day every other week, no matter the date.

What are the Benefits of Biweekly Payroll?

The biweekly payroll has several benefits for both employers and employees. 

That’s why many companies around the world use it as a means of payment schedule.

 Employees can arrange their finances more wisely since they receive the money on the same day each month. Plus, they don’t have to struggle with budgeting for a long period as they would with monthly payrolls.

 Biweekly payments are more predictable and reliable than other systems (such as semi-monthly), giving more financial security to employees.

 The biweekly payroll includes two more paychecks than the semi-monthly payroll and 14 more pay stubs than the usual monthly payroll.

Biweekly payroll helps HR staff process payments faster and with minimal errors in comparison with other systems, such as weekly payroll.

Payroll providers usually charge for each payroll run. Biweekly pay systems have lower costs compared to weekly payrolls since you run payments twice a month instead of four.

 Calculating overtime pay is much easier compared to other systems, such as semi-monthly payrolls, since overtime pay is calculated on a workweek basis.

Considering that each business has different needs and capabilities, the solutions that fit them are different as well.

 Here are some of the main disadvantages of biweekly payroll.

 With biweekly payrolls, employees will receive smaller paychecks since they will receive more of them. Eventually, this could lower their motivation as it appears at first like they’re not earning much.

 Due to the complexity of payroll calculations and the higher number of paychecks, organizations might run into mistakes and even postpone payroll.

 With the biweekly payroll system, two months in a year have three pay stubs which means that you have to stay prepared financially to handle it. This is especially true if your organization has a large workforce, which will drastically affect your finances if you’re not prepared.

Usually, payment processors charge organizations for each payroll run. Biweekly payroll might lead to higher processing fees as compared to other types of schedules, such as monthly or semi-monthly payrolls.

For organizations that work with independent contractors who don’t receive consistent projects, this model might face dissatisfaction. They might want to get paid on shorter pay periods, such as weekly, so they can receive money sooner.

In general, the biweekly payroll works fine as long as you can afford the processing fees and extra pay stubs and have a reliable HR team to handle the accounting work in this model.

Calculating the biweekly payroll is less complicated than calculating a monthly payroll but more complicated than a weekly payroll.

 However, the biweekly payroll for both types of employees is easily calculated in just a few simple steps.

For employees paid on an hourly basis, the payroll is calculated by initially taking the overall annual pay and dividing it by the number of pay stubs. 

Annual salary/Nr. of pay stubs = biweekly pay

) For instance, let’s suppose a web developer is paid a salary of $70,000 per year.

Under a biweekly payroll model, the pay stubs will have a value of $2,692. That’s because 70,000 / 26 = $2,692. And in leap years, where there are 27 pay stubs, their value will be $2,592. But keep in mind that in the two months with three paydays, you should be prepared to pay an overall amount of $8,076 within a month.

For hourly employees, the calculation process isn’t that complicated either. 

All you have to do is multiply the hourly rate by the number of working hours for the two-week period. (

Hourly rate * Nr. of working hours for two weeks = Biweekly pay

Let’s say that another web developer is paid an hourly rate of $30 and regularly works 40 hours per week. All we have to do is multiply 30 by 80, and we’ll get the pay stub amount, which is $2,400.

However, if the process appears challenging to you, there are online biweekly payroll calculators that you can use to find the value of a pay stub and more.

For businesses that are currently running biweekly payrolls or have decided to implement it in 2023, here is a biweekly payroll calendar prepared by the 

If you want to calculate the biweekly payrolls in a seamless manner, you should use a biweekly payroll Excel template.

1. Is biweekly payroll better than semi-monthly payroll?

The bi-weekly payroll often proves to be better than the semi-monthly payroll for employees who want to receive more pay stubs. More exactly, bi-weekly payroll implies that employees will receive two more pay stubs per year as compared to the semi-monthly pay system.

The biweekly payroll meaning isn’t anything complicated. A biweekly salary implies the use of a payment schedule through which employees receive their pay every other week. In a regular year, employees receive 26 pay stubs, and in a leap year, they receive 27 pay stubs.

3. How do you calculate biweekly payroll?

Firstly, you have to determine the total gross salary and then divide that number by the number of paydays (26 in a regular year and 27 in a leap year). If you’re an hourly employee, you have to multiply the number of working hours during two workweeks by the hourly rate.

4. Do you get taxed more if you get paid biweekly?

When you get paid doesn’t have anything to do with the amount you receive in each paycheck. Tax liabilities are calculated by taking into consideration the total amount earned per year by employees rather than their paycheck frequency.

The biweekly payroll system is one of the most reasonable payroll schedules currently used by organizations, and it is even mandatory in some states.

 The payroll model implies that a business should pay employees every other week, sending 26 pay stubs annually.

Biweekly payrolls deliver paychecks to employees twice per month, but differently from semi-monthly payrolls, the payment is made every other week instead of on a specific date. Even though the paychecks are slightly smaller compared to semi-monthly payrolls, they’re more frequent, which keeps employees happy.

With a biweekly payroll system, you can pay your employees twice per month. Read on and see whether it's the right system for your company!

What is Biweekly Payroll? Benefits, Examples & 2023 Calendar

“Is an invoice a receipt?” This is the question you have probably asked yourself if you’re a business owner offering certain products or services. The two documents are quite similar, which is why it’s no wonder so many people often mix them up.

understanding the difference between an invoice and a receipt is crucial if you want to maintain healthy business practices and accurate financial records of your sales.

 Although this may seem difficult, don’t worry—we’ve got your back!

In this article, we will explain what invoices and receipts are, why they’re important, how they’re different, and when you should use them! Wait no more—let’s get to the point right away!

An invoice is a legal document that you, as a small business owner, independent contractor, or freelancer, give to the buyers of your goods or services.

 It breaks down the payment terms both parties have agreed to and is used when you want to bill your clients for the work you have done.

The information that goes on an invoice varies from company to company, but it typically includes the following:

 Invoices must contain your company’s name, address, phone number, logo, etc.

 Besides your information, you also need to list your customer’s name, address, phone number, and other important contact details.

The invoice must also specify the date of issuance and the payment due date.

Although it might seem like a minor detail, an invoice number is required by law in some countries, and some clients might not even accept this document without it.

A purchase order number, or PO, is a unique code that acts as the official confirmation of the buyer’s intent to buy something from you.

 The invoice must also include a detailed list of the goods and services you provide, the quantity, and the price of each item.

 If you’re offering a discount to your client or if they have to pay an additional fee for late payment, your invoice must clearly specify it.

 Lastly, an invoice can contain a nice message to your client, such as a thank-you note.

The key reason why invoices are important is that they ensure you get paid on time by your clients.

 In fact, an invoice is a legally enforceable agreement between the business and the client.

you can use invoices to keep track of your sales and manage your finances.

 These documents tell you when you made a sale, how much you billed a certain client, etc. With this information, you can create accurate business forecasts and determine which projects make you the most money.

 At the end of each year, you’ll have to file the 

. To complete it, you’ll need some information from your invoices, such as the taxable payments you received throughout the year or the amount of taxes you owe for a certain sale.

Receipts come in various shapes and sizes and serve as an accounting document that you provide to your clients as 

 for your products or services. Also known as a “receipt for payment,” this document typically includes the following information:

 A receipt must include your company’s name, address, and phone number at the top.

 Besides the company information, your receipt must also include the date of issuance.

 The receipt must outline each good or service provided to the customer, as well as the cost of each item.

If there are any taxes or handling fees related to your items, they should be listed before the total payment amount.

Last but not least, the receipt should include the total amount your client paid for the goods or services. Note that it should match the total invoiced amount.

One of the most common examples of receipts is the one you get from purchases at grocery stores or pharmacies. On them, you’ll see how much you paid for the items you bought, the taxes, the date when the receipt was created, the store name, etc.

As you can see, invoices and receipts contain similar information. 

But they are also quite different, regardless of their similarities.

Here are some of the biggest differences between invoices and receipts:

Invoices are issued before the payment is made, whereas receipts acknowledge the payment and are provided after it.

A receipt is a legal document that serves as proof of purchase, while an invoice is a request for payment.

An invoice is usually more detailed than a receipt, as it shows the exact details of the products or services provided, billable hours, detailed taxes, etc.

Invoices are forwarded directly to the client who is billed for the goods or services, whereas a receipt can go to a third party since it serves as proof of payment.

Whether you’re a freelancer or a business owner, you’ll need invoices to bill your clients.

 You’ll have to send them either in digital form or via mail. The document will serve as proof of order and ensure you get paid for your work.

An invoice also allows you to bill your client in advance or set up a payment schedule (e.g., weekly, biweekly, monthly, bimonthly, etc.).

Giving receipts to your customers is important, as they might use them to prove they made a certain purchase.

 The receipts could also be used by customers to help them deduct purchases from their tax return or request reimbursement from their employer.

That’s why you should always hand out a receipt to your customers after the transaction takes place. You should also make two copies of each receipt, one of which will go to the customer and one for your business records.

An invoice is a legal document that’s used to bill buyers for goods or services. It contains payment terms, company and client information, the date of issuance, etc.

Invoices are important because they ensure you get paid on time, help you keep track of sales and manage your finances, and make it easier for you to file taxes.

A receipt is an accounting document that serves as proof of payment for your products or services.

This document contains similar information as invoices, such as the prices of items, date, company name, etc.

The biggest difference between an invoice and a receipt is that the former is used to bill clients, while the latter is used as proof of purchase.

Regardless of their differences and similarities, you should always try to create both invoices and receipts when selling goods or services. 

The invoice will allow you to bill someone for your items, while the receipt will provide both you and your client with proof of payment.

If you want to make invoices the easy way, you can use our 

. With it, you can create invoices in a few steps, download them, and forward them to your clients with zero complications!

Is an invoice a receipt? Read this article and find out! We'll also explain why both of these documents are important and when to use them!

Is an Invoice a Receipt? | Definitions and Differences

If you’re a business owner, chances are you’ll be facing invoice disputes from time to time.

 The more customers you have, the higher the odds of disputes happening.

But what exactly is an invoice dispute, and how can it affect your company?

This article will give you all the answers you need and show you how to resolve an invoice dispute easily. We’ll also show you how to make invoices with an online generator, so you can minimize the chances of any errors coming from your end.

So, without further ado, let’s jump straight into the action!

An invoice dispute occurs when one of your clients has a problem with either your invoice, the work performed, or the goods provided. 

There may be instances where a client might refuse to pay your invoice, in which case it’s called a disputed invoice.

Your clients or customers might dispute an invoice for numerous reasons, whether because they don’t have enough funds to pay or perhaps you’re late with the delivery. In any case, these situations are common and can happen to any successful business.

How an Invoice Dispute Can Affect Your Business

No matter how long you’ve been in business, you’re bound to have an invoice dispute at some point or another.

 Here are some ways this situation can affect your business:

 Late payments are one of the biggest effects a disputed invoice can have on a business. When they happen, they can 

 Besides the disturbed cash flow, invoice disputes also have a huge impact on your profits. If the client is not happy with your services or goods, they can decide not to pay you, in which case you’ll earn no money for your hard work.

 Profit is not the only thing you can lose because of an invoice dispute. If you enter an invoice dispute with multiple clients, chances are high that you’ll stain your company’s reputation. Fewer people will want to work with you in the future, and on top of that, clients can go so far as to take things to court.

Now that you know what an invoice dispute is and how it can affect your business, let’s see how it may come about in the first place!

One of the most common reasons why some clients refuse to pay is dissatisfaction with the work of the company they hired.

 Now, they might be dissatisfied if you were late with the delivery, or even worse, if you delivered faulty goods.

In cases where the client is dissatisfied, there isn’t much you can do about resolving the invoice dispute except to offer an apology along with a discount or credit. Furthermore, you can ask them to honestly tell you what you can do to improve your service.

Small errors in the invoicing process can easily cause a dispute. 

For example, you might encounter clients who will refuse to pay you if you forget to write down an invoice number, quote the wrong figure, or specify a different contact address.

There are also instances where the client will refuse to pay if the invoice is delivered late. That’s why you should always try to send your invoice on time, or even in advance if you’re working on a larger project.

Whatever the case might be, your best bet would be to have a reliable invoicing system in place. For this, you can use an online invoice generator, which will provide you with free templates for making flawless invoices in no time.

The key part of an invoice is the section with the payment terms.

 Here, you need to be as detailed as possible when creating your invoices, as you’ll want your client to know exactly how much they owe you.

If you enter a different amount on your invoice than the one you agreed on with your client before the work starts, they might refuse to pay. That’s why it’s so important to go over the payment details with your client prior to the start of the project.

To make sure you don’t have any pricing disagreements, make sure to list every item and service that you’re selling in detail on your invoice. This way, your client will know how much they are paying and what they’re paying for.

 Are you facing an invoice dispute? If so, read this article and find out what are the steps you should take to solve it like a professional!

Blog

1120 Tax Form Explained [What It Is and How to File It]

What is Biweekly Payroll? Benefits, Examples & 2023 Calendar

Is an Invoice a Receipt? | Definitions and Differences

Invoice Disputes and How to Solve Them Like a Professional

The Best Way to Make an Invoice for Cleaning Services [2023]

Freight on Board (FOB) Invoice Explained + Examples [2023]

A Responsible Employer’s Guide to Payroll Liability

What is a Recurring Invoice: Details & Examples

What is Imputed Income on a Pay Stub? Definition and Examples

What are Billable Hours and How to Efficiently Track Them