The Small Business Tax Help Blog

Archive for July, 2007

Question: As employer what % of what I charge needs to go to employee benefits / taxes etc…?

I’m thinking about hiring employees even though I’m in business as sole proprietor. I plan to change to LLC when resources allow. Need to know how much % I should set aside for employee overhead costs. I have heard 15% and 25% and need to know before I enter into an agreement for aditional work that will require more help. If I pay said employee $15 hr. how much would I need to charge to cover state – fed amounts? I also plan on getting an accountant after I know this is in contract, and will be able to afford their service. If I’m not mistaken self employment taxes are around 15%, but does that rule hold true for employees, or is it more?

Answer: When you have an employee, you are required to file quarterly return for employment taxes for federal and state. State employment taxes depend upon your state. If you are going to have employees, your first requirement is to get EIN and state tax number.

Federal taxes.
From employee's paycheck you withhold
1. Social security tax at 6.2% for first $97,500 of wages
2. Medicare tax at 1.45% on all wages.
3. Federal income tax as per his W4 allowances.
Then you add equivalent social security tax and medicare tax (from employer's side) and send the entire amount as Federal employement taxes.
Then there is FUTA, which you normally make yearly payment.

State taxes depend upon your state.
For example in CA, ther are three taxes
Unemployment insurance UI at 3.4%
Employment tax ETT at 0.1% for first $7,000 of wages
State Disability Insurance at 0.6% for first $83,389 wages (max $500.33 per employee).

Children, education good for tax credits

Dear Action Line: Where can I find the IRS definitions for such things as 'dependents' and 'Child and Dependent Care credit?' — L.T., Jenks.

Question: ma unemployment federal id #?

im wondering if anyone knows the federal id # for massachusetts unemployment. im trying to file my taxes and i have all the info except that. and i know ill be getting a 1099 but im going into the hospital next week and want to get it done now.
tia

Answer: 04-6002284 This is for Commonwealth of Massachusetts
(Unemployment or tax refund)

The Posting Board

Calendar Monday, Jan. 18 Martin Luther King Jr. Day: Town Hall closed. Tuesday, Jan. 19 STATE ELECTION: Polls open from 7 a.

Ron Paul Info for the Newly involved (newb)

Question: Should Churches Pay Taxes like any other business?

They have lobbyists in Washington and they preach political ideologies. They approve and encouraged war with non-christian countries. They do not have separation of church and state. And they have mega assets. Isn’t that justification enough for them to pay eqaul tax?
Please don’t give me a ‘what is the meaning of is’ argument.

Answer: If the Church has an income from books, tapes and so forth yes.

But if the Church is being supported by those that attend through offerings then I would have to say NO.

Wash. gov won't have full plate of tax hikes

Gov. Chris Gregoire won't suggest a full roster of tax hikes to pay for the programs she wants rescued from the state's $2.6 billion budget deficit, deferring instead to the Legislature while state officials wait for word of another federal bailout.

GOPod VIDEO: Senate passes potential job-killing cap-and-tax bill

Question: Tax incentives to promote hiring? How about NOT mandating small businesses pay for Obama’s Cap & Trade and?

Health care initiatives instead?
How can Obama expect small businesses to hire with huge future expenditures looming in their future?
There will be no new jobs until these issues are settled and “new” tax incentives (which are only temporary) can not fool wise entrepreneurs.

Answer: Cap and trade and Obamacare will cause business not to hire. Simple as that. More jobs will go overeseas. More unemployment . Those that cannot see that are idiots.

Alaska governor pushes changes to state energy tax

Gov. Sean Parnell said Thursday that he wants to give oil and gas companies greater incentives to do business in the state, a plan he says will boost production and create potentially hundreds of new jobs for Alaskans.

Antoni Abad - Tax incentives for BA. Fòrum d'inversió 2009

Question: does your taxable income viewable on your credit report.?

Hi,
I run a small business (selling stuff on the internet), but when i file my taxes. I file it as my personal income. Now I am wondering on my credit report under employment would it show me as unemployed? or self employed? and do creditors have any access to see how much I filed my taxable income as? (btw: this is for canada)

Answer: Your credit report will show your employment information the same as the last credit application you filled out and no your income is not included in your credit report.

Ice fishing is big fun -- and big business here

MARBLEHEAD The white blanket of snow and ice stretches for miles in almost every direction.

Jack Layton's address to the New Democrat National Convention