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Legalities: Taxes
As a business owner, you may be required to file estimated
tax returns and pay estimated taxes quarterly. You also have to
submit taxes withheld from employee paychecks. Here are some of
the taxes to monitor:
- Employment taxes --
Federal income taxes, Social Security and Medicare, federal unemployment
and state income taxes. See IRS
Publication 15.
- State and federal
business income tax
- Federal self-employment tax
-- Required by those who work for themselves to cover Social Security
and Medicare contributions.
- Sales tax -- Each
state requires a sales tax number for any company involved in
selling tangible items. Sales tax is collected, reported and paid
to the state every month.
- Unemployment insurance tax
-- Employers pay federal and state unemployment taxes if they
have more than one employee on the books for at least 20 weeks
in a calendar year, or if they have paid more than $1,500 in gross
wages in a calendar quarter.
Information on these taxes can be found at the IRS'
Small Business Corner and on state
home pages.
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