What Tax is Paid by Business Only
Generally, a business is required to pay four types of taxes – income tax, self employment tax, employment taxes, and excise tax.
The income tax return should be filed by all businesses except partnerships. Once again, the form will differ from one business to another, depending on the business structure.
Businesses that hire employees are required to pay for employment taxes. The tax will cover for Medicare, Social Security, and federal unemployment tax (FUTA) and the federal income tax withholding. Whether you’re running a small or large business, you will pay for the employment taxes.
The excise tax is paid by businesses involved in the manufacturing or selling of certain products, operation of business, usage of products or facilities and equipment, and the receiving payments for certain products or services. This type of tax is still divided into different categories which include the environmental taxes, air transportation or communication taxes, fuel taxes, retail of tractors/trailers, and manufacturer’s taxes.
The self employment tax is paid by the owner of a certain business but it is not directly related to the business. Since you’re looking for the taxes paid by businesses only, you will be focusing more on the income tax, employment, and excise tax. To ensure that you have a clean record with the IRS, you have to inquire about your tax obligations beforehand.
With thorough knowledge in the taxes that you need to pay, you can avoid potential legal issues and problems in the future. As the business owner, it is your duty to find out about the taxes that your chosen business has to pay. Don’t worry because the taxes are subject to the income/losses and on the type of business that you’re managing.
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