November 2022
Understanding Payroll Tax Requirements
Understanding Payroll Tax Requirements Employers are required to make federal payroll tax payments to the government, as well as to complete appropriate reporting and information returns. Employers must also provide W-2 and 1099 reports explaining the compensation and withholding amounts paid to employees and contractors. There could be government requirements. Rules can be complex and penalties for incompatibility can be severe, so the management of payroll tax responsibilities is usually provided by small businesses externally. Handling the payroll tax responsibilities appropriately involves ensuring: Your federal and state taxes will be paid and notified to the applicable tax authorities You report revenue as required, the...
October 2022
What is Revenue Tax?
What is Revenue Tax? Income tax is a tax applied to real or legal persons (taxpayers) in terms of income or profits earned by them (often referred to as taxable income). Income tax is generally calculated as the product of a tax rate's tax-subject income multiplier. Taxation rates may vary depending on the type or characteristics of the taxpayer and the type of income. As taxable income increases, the tax rate may increase (referred to as incremental or progressive tax rates). Tax applied to companies is often known as corporate tax, and is generally taken at a fixed rate. Individual income...
June 2022
What is FICA Tax?
What is FICA Tax? FICA stands for the Federal Insurance Contributions Act. This law outlines that taxes should be cut from pay checks and used to finance Social Security and Medicare programs. Both employees and employers are affected by the FICA tax. What's a FICA? The law establishing the FICA tax was adopted in 1935. Funds are used to provide pension savings and insurance programs for working Americans. The FICA tax is designed to provide support for pensioners who are eligible for assistance. Paying FICA taxes also allows you to benefit from disability and life insurance benefits. If you are disabled, you may qualify for...
February 2022
Direct Money Deposit or Money Withdrawing
Direct Money Deposit or Money Withdrawing What is Direct money Laundering? Direct deposit can be defined as a payment made directly to the creditor's account. Payment can be made electronically from one account to another instead of traditional check deposits. Direct deposits are particularly common to businesses as they use the transaction to pay their employees. Direct deposit can also be used for tax returns. When the funds are directly deposited into the creditor's account, the account is automatically credited and approval is not required for the money. Banks use an automated barter room to facilitate payments or transfers made directly as deposits. The exchange room...