Question

Summary of the different types of taxes which any business firm has to deal with.

Answer 1

There are 5 types of business taxes.

A. Income Tax - This is the tax the firm has to pay on their net income for the year.

B. Estimated tax - This is the tax the firms make by making regular payments of estimated tax during the year.

C. Self-employment tax - It is a social security and Medicare tax for individuals who work for themselves.

D. Employment Tax - The firm has some employment tax responsibilities. Employment taxes include:Social security and Medicare taxes, Federal income tax withholding, Federal unemployment (FUTA) tax

E. Excise Tax - The firm pays excise tax when :Manufacture or sell certain products, Operate certain kinds of businesses, Use various kinds of equipment, facilities, or products, Receive payment for certain services.