Regard Taxes for Small Business Startups
Are you one of those who are planning to venture into a small business? Are you someone who happens to stay at home out of retirement, often consider running a business as a hobby? More than just a pleasure, one must find the following factors to get away from financial burden as a taxpayer:
- Exert more time and effort to profit.
- Change methods of operation to improve profit.
- Consider advisers to succeed in the chosen business.
- Have long-term goals.
Once you decide to move forward with your profit-making activity, you’ll want to get briefed on taxes. Fortunately, there are publications from the Internal Revenue Service (IRS) that offer free lessons on the basics of paying taxes. Some of these include:
- Business taxes and forms
- Electronic filing and paying of taxes
- Tips on running a business out of home
- Federal taxes for newly hired workers
- Hire workers who reside out of citizenship
- Ways on how to set up a retirement plan
- Ways of managing the payroll for the workers
- Ways of making tax deposits and filing payroll tax report
Making a profit is above anything. If your business operates for at least five years, make the first three profitable things you can do to pass any blocks that may come on your way.
As a bottom line, running up a small business after retirement is about having fresh ideas, marketing, sales, hard work- and taxes. And, it’s very nice to make yourself restart and succeed for another round.
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New Taxes and Fees to Pay for ObamaCare
Even though you may not support the promotion of ObamaCare someone has to pay for it.
The Affordable Care Act has added new fees and taxes to do just that. Some of these new taxes and fees directly affect insurers. The Act has added seventeen new taxes that will affect most Americans directly in some way.
The one question everyone wants an answer to is how much it will cost the world of struggling small businesses. It appears that small businesses with at least 50 employees and do not currently offer health insurance to their employees could take the hardest hit.
The Kaiser report states that, “more than 90 percent of businesses with 51 or more workers already provided coverage in 2011 and only 57 percent of businesses with 50 or fewer employees provided health benefits.”
Critics of ObamaCare believe that it will hurt business expansion and job growth. Advocates feel in the end it will save businesses money.
Here are a few of the new taxes that will go to pay for ObamaCare:
ü “3.8% surtax on investment income. This is for anyone who has an adjusted gross income of more than $200,000.”
ü “0.9% surtax on Medicare taxes. This is for those who make more than $200,000.”
ü “Any Flexible Spending Account contributions will be capped off at $2,500.”
ü “Itemized-deduction for medical expenses is going up to $10,000.”
ü “Penalties on non-medical withdrawals from Healthcare Savings Accounts have risen from 10% to 20%.”
ü “Indoor tanning services will see a tax of 10%.”
ü “Starting in 2018 the “Cadillac Health Care Plans” will get a 40% tax.”
ü “Tax that eliminates the ability to pay for over-the-counter medicines.”
ü “For those who do not purchase health insurance they will see a penalty tax…”
ü “Medical devices that cost more than $100 will also be taxed.”
Categories: Federal Tax, Income Tax, Tax Law Tags:
The Big Companies Pay Low Tax Rate
A newly released government report states that big U.S. companies pay far less in federal income tax than they want the public to know.
Back in 2010, big money corporations paid taxes at a rate of 12.6 on their income. This report was put together by the General Accountability Office. When the GAO office added up the companies, state, local and foreign taxes and they discovered they paid a rate of right around seventeen percent.
In the report the General Accountability Office states that “The average effective tax rates for profitable corporations were well below the federal statutory rate even when foreign and state and local income taxes were included.”
Tax experts say that one of the biggest abusers of tax law loopholes is Apple. Reports on Apple show that the company got away with not paying any taxes again this tax season on their profits from their subsidiaries in Australia.
The new report has fired up the debate on tax reform. “Today’s GAO report provides more stark evidence, if any is needed, that large, profitable U.S. corporations as a whole are not paying their fair share in taxes. When some U.S. corporations use unjustifiable loopholes and offshore gimmicks to avoid paying Uncle Sam, their tax burden is shifted onto hardworking American families and small business. Today’s GAO report quantifies just how much of the corporate tax burden has been shifted onto other taxpayers: America’s large, profitable corporations are now paying a lower tax rate than our teachers and firefighters.” said Sen. Carl Levin of Michigan in a press release.
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