Learn more. Apply for a Loan. Sole Proprietorship A sole proprietorship is an unincorporated business owned by one person. Partnership A partnership is a business owned by two or more people who have signed a partnership agreement and have invested in the business. Corporation A corporation is made up of shareholders who own stock in the company, and is a separate taxpaying entity apart from its owners. Self-Employment Tax Everyone who is employed in the U. Estimated Tax As we noted earlier, income taxes in the U.
Employment and Payroll Taxes If you have employees, you have another set of forms to file and taxes to pay. Excise Taxes This is an umbrella term covering certain kinds of environmental taxes, communications and air transportation taxes, fuel taxes, taxes on the sale or use of a variety of different articles, and tax on some sales of heavy trucks, trailers, and tractors.
State Taxes In addition to the taxes the federal government requires, your state and local governments will have their own demands. Sales Tax Sales tax is imposed on the state and local level, and different places have different rules about which businesses must collect it, how much is levied, and what it is charged for. Franchise Taxes Franchise tax is charged by some US states to corporations, LLCs, and some partnerships simply for the privilege of doing business in that state.
Real Estate Taxes This is another class of local tax your business will have to pay if you own property.
Corporate Tax Summary This is a list of the taxes for which your business may be responsible. Apply for a Loan Get Started. Tell us a little about yourself, your business and receive your quote in minutes without impacting your credit score. Thanks for applying! Social Security and Medicare taxes are imposed on both the employee at a flat rate of 6.
Self-employed individuals are responsible for paying the entire Unlike federal and state taxes, FICA taxes are unaffected by the number of withholding exemptions claimed by the employee. You simply multiply an employee's gross wage payment by the applicable tax rate to determine how much you must withhold and how much you must pay as the employer.
The wage base is adjusted every year for inflation. The Medicare tax does not have an income limit. The maximum annual earnings by an employee that are subject to Social Security withholding in Unemployment taxes, or FUTA, are taxes paid solely by the employer.
You must pay unemployment taxes if either of the following applies:. The FUTA tax rate is 6. However, you can claim credits against your gross FUTA tax to reflect the state unemployment taxes that you pay.
If you pay your state unemployment taxes when they are due, you are allowed to claim a 5. Calculating payroll taxes can be very complicated, and it is important to send out payments on time to avoid penalties and late fees. The IRS usually sends business owners a notice at the end of each year detailing which method to use for the upcoming year.
In general, the timeliness of a deposit is determined by the date it is received. However, a mailed deposit received after the due date will be considered timely if you can establish that it was mailed at least two days before the due date. To learn more about small-business employers' payroll duties and obtain the relevant forms, go to the IRS website or call the IRS live helpline for businesses at Internal Revenue Services.
Internal Revenue Service. Contractor Designation. Accessed Oct. Arizona Department of Revenue. Tax Foundation. Social Security Administration. Social Security. Income Tax. Personal Finance. Finances With Children.
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For additional information, refer to Estimated Taxes. Self-employment tax SE tax is a social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance Medicare benefits.
Note: There are special rules and exceptions for aliens, fishing crew members, notary public, state or local government employees, foreign government or international organization employees, etc. For additional information, refer to Self-Employment Tax. When you have employees, you as the employer have certain employment tax responsibilities that you must pay and forms you must file.
Employment taxes include the following:.
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