So, there are myriad taxes a business has to keep track of and, frankly, it boggles my mind that I haven’t forgotten more than I have. If any of you can think of any I’ve forgotten, I’d appreciate hearing about it.
So, here are some of the taxes a business must pay:
- Income Tax – The form depends on the type of company you are.
- Form 941 Taxes – These are taxes that are withheld from your employees, such as Medicare, Social Security and Federal Income. These must be deposited either monthly or semi-weekly, in most cases
- Form 940 Taxes – This is your Federal Unemployment Tax (FUTA). These are due annualy, in most cases.
- Excise Tax – This is your sales tax and your locality tax. In my state we pay a transit tax, as well. Due monthly in my state.
- Labor & Industry Taxes – These are based on the number of hours employees worked and are paid quarterly.
- Employment Security Taxes – Also known as, unemployment taxes. These are based on the amount you pay employees and are also due quarterly.
- Business License Tax – This is due quarterly for me and is based on the amount of sales.
- Excise Tax – This is due quarterly for me, as well, and is based on sales in the city in which I have a license, only.
So, these are the only taxes I could think of that I have to pay. If I can remember some more, I’ll post them. I’ve included a link to the IRS site for businesses, which has a calendar that outlines what is due when, on the federal level. Your state website will have a business section that will give you more details as to what the requirements are in your state. Or, you can just give them a call.
One note on accounting software. I use QuickBooks and I can print and file just about any federal tax form right from QB, without having to do any calculations. It’s great, I just check to make sure the numbers look right, print out the form and the inevitable check and send it off. I would urge you to explore the functions your software has for this sort of thing.