Everything you need to know about filing business taxes is right here. All firms must pay business taxes, but the taxes you must pay and how you pay them depends on the sort of company organization you own. Knowing how to submit your taxes correctly and on time allows you to focus on running your business rather than focusing on IRS tax paperwork. From your Employer Identification Number to standard business tax forms, we cover all you need to know about company taxes in this article.
Taxes on businesses of various types
The taxes you must pay are mostly determined by two factors: the type of business you own and the state in which you conduct business. These are the many business taxes you should expect, according to the IRS:
- Taxes on earnings
Aside from partnerships, all business entities must file and pay taxes on income earned during the year. A company or corporate income tax is imposed in nearly every state, but each state has its own tax regulations. Make sure you understand your needed income tax at the state and municipal levels when you prepare your business taxes for the year. Check out business tax returns online now to know more information.
- Taxes expected
Estimated taxes are due every quarter, and figuring out how much you need to pay each quarter can be difficult for new business owners. It’s critical to get your calculations correct because failing to pay or underpaying these taxes can result in a penalty. To see if this tax applies to your firm and to figure out how much you owe, go to the IRS’s estimated tax guide.
- Taxes on self-employment
The self-employment tax (SE tax) is a Social Security and Medicare levy that goes toward your social security coverage. Retirement, disability, survivor, and Medicare benefits are all provided through Social Security.
- Taxes on employment
You must file and pay certain federal taxes if you have W-2 employees, including social security and Medicare taxes, federal income tax withholdings, and federal unemployment tax. Additionally, each state has its own set of employment taxes, such as unemployment insurance and workers’ compensation insurance, so be sure you have all the information you need from your state’s tax department.
- Excise duties
These taxes are paid when specific items, such as gasoline, are purchased, and they are frequently included in the price of the good. Excise taxes are imposed on a wide range of enterprises, but gasoline is usually one of the most significant. Motor fuel, airline tickets, tobacco, alcohol, and health-related items and services are all subject to excise taxes. Visit the IRS’s website on excise taxes for a more comprehensive list.