Best all-in-one accounting software for contracting companies
All-in-one finance platform for accounting, bookkeeping, taxes and payroll for contracting companies
Why contractors love mesha
Hours saved on accounting, bookkeeping and financial admin tasks
saved on bookkeeping and tax fees
accurate financial insights
Financial powerhouse for your contracting business
Intelligent accounting software for modern contracting businesses
Supercharge your contracting business growth and close your books 3X faster
Expert bookkeeping tailored to your contracting business needs
Managing a contracting business involves specific financial challenges. Our expert accounting, bookkeeping, and tax services are finely tuned to cater to the unique financial requirements of your contracting company. Whether you're a solo contractor or a large contracting firm, we comprehend the intricacies of contracting finances and are well-prepared to handle them effectively. finances and are well-equipped to manage them efficiently.
Trusted tax management and filing for contracting companies
Tax Management Software
  • Automated tax calculation for sales, payroll and federal
  • Reminders on taxes and compliance filing
  • Tax ready reports with P&L, expenses and balance sheets
Tax Prep and Filing
  • Instant access to top tax consultants for contracting companies
  • Proficient counsel on contracting specific tax frameworks and tax-efficient strategies
  • Minimizing tax liabilities and maximizing deductions
  • Stay up to date on dynamic tax laws and regulations impacting contractors

Tax related FAQs for contractors

What are the essential tax obligations for a contracting business?

Contracting businesses have several tax obligations to fulfill. These typically include income tax, where you report your business income and pay taxes on your profits. Self-employment tax is also crucial; this covers Social Security and Medicare taxes for self-employed individuals. Depending on your location, you may be subject to state income taxes. Additionally, you might need to consider sales tax if you sell products or services subject to this tax. Payroll taxes, including withholding and remitting employee taxes, and property taxes if you own business property are other obligations to be aware of.

Yes, there is a significant difference in tax treatment. Contractors are considered self-employed and responsible for paying their own taxes, including both the employer and employee portions of Social Security and Medicare taxes (self-employment tax). Employees, on the other hand, have taxes withheld from their paychecks by their employers. Employers also pay a portion of these taxes on behalf of their employees. Keep detailed records to substantiate your deductions.

Section 179 of the IRS tax code allows businesses to deduct the cost of qualifying equipment and property as an expense in the year the property is placed in service. This can provide significant tax savings for contractors who purchase and use equipment and machinery in their business.

Contractors can reduce their self-employment tax liability by maximizing business deductions, contributing to retirement accounts (which lower taxable income), and, in some cases, by considering the S corporation tax status, which can help reduce self-employment tax.

Estimated quarterly tax payments are payments made by self-employed individuals, including independent contractors, to cover their income and self-employment tax obligations. If you expect to owe $1,000 or more in taxes when you file your annual tax return, you are generally required to make estimated quarterly tax payments to avoid penalties.

Sales tax rules vary by location. Ensure you're aware of the specific requirements in your area and collect and remit sales tax as necessary.

Making payroll painless for contracting businesses

Our comprehensive payroll features help make payroll management super simple.

Stay compliant with mesha
  • Off Cycle payroll and flexible payment schedules

  • Next day direct deposit

  • Payroll Deductions and Garnishments

  • Overtime and reimbursement calculations

  • Payroll and taxes across multiple states

  • Payroll for FTEs, contractors and freelancers

Payroll taxes and compliance

We take care of taxes and compliance to adhere to the local regulations and government declarations.

Stay compliant with mesha
  • Automated tax calculation

  • Tax filing and reporting

  • Tax codes and regulation updates

  • Multi jurisdiction compliance

  • Tax liability tracking

  • Work Classification Compliance

  • SUI Reporting

  • Wage Garnishments and Deductions

Want to start a contracting business, but don’t know how to go about it?
Build a foundation of financial success with mesha