Examples of payroll tax in the following topics:
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- Two examples of these are corporate and payroll taxes.
- Corporations are also subject to a variety of other taxes including: property tax, payroll tax, excise tax, customs tax and value-added tax along with other common taxes, generally in the same manner as other taxpayers.
- Payroll taxes are taxes that employers are required to pay when they pay salaries to their staff.
- Payroll taxes generally fall into two categories: deductions from an employee's wages, and taxes paid by the employer based on the employee's wages.
- Corporations, such as CBS, whose headquarters are pictured above, are subject to multiple forms of tax, from corporate income tax to payroll taxes.
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- Social Security is funded through payroll taxes called Federal Insurance Contributions Act tax (FICA) and/or Self Employed Contributions Act Tax (SECA).
- Medicare is funded through revenue from FICA and SECA payroll taxes, as well as through premiums paid by Medicare enrollees and general fund revenue from the federal government.
- Benefits are generally paid by state governments, and are funded in large part by state and federal payroll taxes levied against employers.
- These payroll taxes were established by the Federal Unemployment Tax Act (FUTA), and allow the IRS to collect federal employer taxes used to fund state workforce agencies.
- It provides benefits to retirees, surviving family members, and disabled workers who have contributed to the Social Security Trust Fund through payroll taxes.
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- When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax or profit tax.
- Individual income taxes often tax the total income of the individual, while corporate income taxes often tax net income.
- Payroll taxes generally fall into two categories: deductions from an employee's wages and taxes paid by the employer based on the employee's wages.
- In the United States, payroll taxes are assessed by the federal government, all fifty states, the District of Columbia, and numerous cities.
- Most jurisdictions imposing payroll taxes require reporting quarterly and annually in most cases, and electronic reporting is generally required for all but small employers.
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- In U.S. constitutional law, direct taxes refer to poll taxes and property taxes, which are based on simple existence or ownership.
- Payroll taxes are imposed on employers and employees and on various compensation bases.
- These include income tax witholding, social security and medicare taxes, and unemployment taxes.
- Sales tax is calculated as the purchase price times the appropriate tax rate.
- The estate tax is an excise tax levied on the right to pass property at death.
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- These include taxes on income, payroll, property, sales, imports, estates and gifts, as well as various fees.
- Citizens and residents are taxed on worldwide income and allowed a credit for foreign taxes.
- State taxes are generally treated as a deductible expense for federal tax computation.
- Payroll taxes are imposed by the federal and all state governments.
- Sales tax is collected by the seller at the time of sale, or remitted as use tax by buyers of taxable items who did not pay sales tax.
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- Other current liabilities reported on the balance sheet are sales tax, income tax, payroll, and customer advances (deferred revenue).
- The sales and use tax is a tax paid to a governing body by a seller for the sales of certain goods and services.
- Sales tax payable can be accrued on a monthly basis by debiting sales tax expense and crediting sales tax payable for the tax amount applicable to monthly sales.
- If the book-tax difference is carried over more than a year, it is referred to as a deferred tax.
- Income tax payable can be accrued by debiting income tax expense and crediting income tax payable for the tax owed; the payable is disclosed in the current liability section until the tax is paid.
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- Each has its own authority to tax.
- For example, states can set their own sales and payroll taxes that apply only within the state.
- Similarly, local governments can impose a variety of taxes, such as property taxes.
- Federal taxes are created by the US Congress, which passes laws mandating what is taxed and the amount of the tax.
- Disputes over tax rules are generally heard in the United States Tax Court before the tax is paid, or in a United States District Court or United States Court of Federal Claims after the tax is paid.
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- Tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare.
- In economics, tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare.
- Tax incidence is said to "fall" upon the group that ultimately bears the burden of, or ultimately has to pay, the tax.
- For example, United States Social Security payroll taxes are paid half by the employee and half by the employer.
- In this example, consumers bear the entire burden of the tax; the tax incidence falls on consumers.
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- Tax evasion is the term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means.
- Tax avoidance is the legal utilization of the tax regime to one's own advantage, to reduce the amount of tax that is payable by means that are within the law.
- The term tax mitigation's original use was by tax advisors as an alternative to the pejorative term tax avoidance.
- Both tax avoidance and evasion can be viewed as forms of tax noncompliance, as they describe a range of activities that are unfavorable to a state's tax system.
- These include taxes on income, payroll, property, sales, imports, estates, and gifts, as well as various fees.
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- There are several problem areas to watch out for, such as payroll, purchasing, inventories, and insurance.
- Payroll is a hefty cash outflow and requires special attention.
- One obvious trend in payroll management is to implement a flexible work force, since the flow of work fluctuates.
- A firm can also increase payroll float times by simply distributing payroll checks after the point when banks will clear checks.
- These costs include storage, insurance, spoilage, handling, taxes, and financing.