The form of business you operate determines what taxes you must pay and how you pay them. There is a lot of tax information to know and understanding all of the details can get tricky so we suggest you let PK Tax Services help you. The following are the five general types of business taxes.
The Federal income tax is based on a “pay-as-you-go” system. There are 2 ways to pay as you go: withholding tax or estimated tax. This article discusses withholding tax (also referred to as “tax withholding”).
If you work at a job, your employer most likely withholds income tax from your paychecks. (Tax may also be withheld from other types of income – such as commissions, bonuses, and pensions.) The tax withheld is sent to the IRS on your behalf, and the funds are applied to your Social Security, Medicare, and income taxes for the year. The amount withheld in each category is reported on your Form W-2 (Wage and Tax Statement), which you receive from your employer.
Sometimes we all feel like the IRS has their own set of rules and that we must always comply. But did you know that the IRS has a Bill of Rights that they must follow as well for our protection?
America’s taxpayers have specific rights when they interact with the IRS. These ten rights are known collectively as the Taxpayer Bill of Rights. These rights cover a wide range of topics and issues, and lay out what taxpayers can expect in the event they need to work with the IRS on a personal tax matter. This includes when a taxpayer is filing a return, paying taxes, responding to a letter, going through an audit or appealing an IRS decision.
Now that school’s out, many students will be starting summer jobs…from working at a summer camp to being an office intern. The IRS reminds students that not all the money they earn may make it to their pocket. That’s because employers must withhold taxes from the employee’s paycheck. Here are a few things these workers need to know when starting a summer job: