Comprehensive Guide to Payroll Taxes in the U.S.
Updated on October 5, 2024 Payroll tax refers to the taxes deducted from employees’ wages and paid to the government by employers. These taxes primarily fund social insurance programs such as Social Security and Medicare, as well as unemployment insurance and various local services. Key Takeaways All employees have a portion of their pay sent […]
What is FICA (Federal Insurance Contributions Act)?
Updated October 6, 2024 Many people see deductions on their paychecks under the abbreviation FICA but may not know what it stands for or how it impacts them. The Federal Insurance Contributions Act significantly affects American social safety nets, influencing virtually all working individuals. While you might know that FICA contributions go toward Social Security […]
Owner’s Draw vs. Salary: Your Pay Decisions
As a small business owner, deciding how to pay yourself is a crucial financial decision that impacts your tax liability, business expenses, and overall financial health. Do you opt for a salary or an owner’s draw? This comprehensive guide will help you understand the differences, benefits, and tax implications of each method to make an […]
Form 3800 Instructions: A Comprehensive Look for Beginners
As a beginning tax filer, filing form 3800 can be daunting. Knowing the requirements and instructions associated with Form 3800 is essential for filing your taxes correctly and on time. This blog gives beginners the confidence they need to approach this vital step in completing their taxes by learning everything related to Form 3800 instructions, […]
