Important Tax Types and Filings Deadlines

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Important Tax Types and Filings Deadlines

Below are the main Tax Types and Filing Deadlings important for any business in the USA. Brief discussion points and respective deadlines are mentioned below…

Income Tax

  • Both individuals (Form 1040) and Companies (Form 1120 or 1065) are subject to income taxes
  • Based on the net income
  • If an ‘Inc’ the entity files income tax as an entity
  • If an ‘LLC’ (or LP, LLP etc), or an S-Corporation, taxes are “pass-through”
  • Deadline

    Inc- 15th April

    LLC- 15th March

Sales Tax

  • A value-added tax
  • The businesses collect and forward it to State
  • The rate depends on the location (county and exact city) and Product you sell
  • Deadline

    Monthly – 20th of Following Month (eg- January Sales Taxes – deadline is February 20th)

State Franchise Tax

  • An annual fee based on either the number of shares or a flat fee depending on the State
  • Just follow the State regulations and rates
  • There can be revenue-based tax too
  • To get business info, generally go to “Secretary of State” website for each State. Eg: SOS.CA.Gov for California
  • Deadline

    March 1st Following Month Year

Payroll Tax

  • EmployEE payroll tax (SUI, Medicare, FUTA)
  • EmployER payroll tax (SUI, Medicare, FUTA)
  • Payroll software handles all the details
  • Collect W4 and issue W2 at year-end
  • Payroll tax = Federal Income Tax withholding + State Tax Withholding
  • Deadline

    By April 30, July 31, October 31, and January 31 (for the fourth quarter of the previous calendar year) Form 941, Employer’s QUARTERLY Federal Tax Return.

1099 Filings

  • The company MUST issue 1099 for: Anyone who was paid over $600 for the year who is a service provider- including rent (An individual, LLC, LLP, LP)
  • For Inc, we do not want to issue a 1099,
  • But for Medical and Attorney firms even if it is a corporation, we should issue a 1099
  • Deadline

    January 31st

    More information; please refer – 1099 Filings 2020

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