Identification should include the following taxes incurred by businesses:
- Income tax
- Estimated tax—tax on income, including self-employment tax, paid through regular installments of estimated tax during the year
- Self-employment tax—a Social Security and Medicare tax primarily for individuals who work for themselves. These payments contribute to the coverage under the Social Security system (including retirement benefits, disability benefits, survivor benefits, and hospital insurance benefits).
- Employment taxes
- Social Security and Medicare taxes
- Federal income tax withholding
- Federal unemployment tax
- Excise Tax—must be paid and forms filed if a business does any of the following:
- Manufacture or sell certain products
- Operate certain kinds of businesses
- Use various kinds of equipment, facilities, or products
- Receive payment for certain services
Process/Skill Questions:
- Why do governments collect taxes?
- What resources are available to help with tax calculation and filing?
- How do varying sales tax rates in a region affect a business's sales?