What Is Payroll Tax?
Payroll tax includes the taxes employees and employers pay on wages, tips, and salaries. Taxes are taken out of workers’ salaries and sent to the government. Payroll taxes include FICA (Social Security and Medicare) and income taxes at both the federal and state levels. Employers are responsible for contributing to Social Security and Medicare and […]
The Federal Insurance Contributions Act (FICA)
What Is the Federal Insurance Contributions Act (FICA)? The Federal Insurance Contributions Act (FICA) of 1935 imposed a payroll tax on U.S. wage earners’ paychecks and required employers to make equivalent amounts. The proceeds from this tax are used to fund the nation’s Social Security and Medicare programs. The goal behind the act from the […]
Owner’s Draw vs. Salary: Your Pay Decisions
As a small business owner, you’re undoubtedly juggling many responsibilities. From managing the day-to-day operations, keeping an eye on cash flow, and tracking business profits, to making crucial decisions about business growth. However, one often overlooked yet critical decision is how you pay yourself. Do you take a salary or an owner’s draw? This question […]
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, […]
