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The tax law at the Federal level is applied equally to both children and adults. Taxes are due when income is earned. This is reflected as deductions in the paycheck.  But, how much tax is taken out of a minor’s paycheck? That's a good question and the answer is not always so cut and dry. The amount of tax taken out of a minor's pay depe...

Taxes are the lifeblood of any nation, fueling the government's ability to provide essential services, infrastructure, and public programs. In the United States, a country known for its complex tax system, comprehending the intricacies of various tax types is paramount.  From federal income tax to state income tax, SUTA Taxes, FUTA ...

Navigating America's intricate tax system often feels like exploring a labyrinth, and for countless individuals, differentiating between income tax and payroll tax can be an intimidating challenge.  In this extensive article, we embark on a journey through the complexities of these two tax categories, i.e., payroll tax vs income tax, dissec...

If you have recently noticed no federal income tax deductions on your paycheck, you may wonder why that is. The answer is that there are a few reasons why the government may have taken no federal income tax out of your paycheck.  Depending on how much money you make and what you do for a living, different rules may apply to you. Rules and reg...

Payroll taxes can be confusing, but it's important to know the formula to ensure that you are paying the correct amount. Knowing the formula can also be beneficial if you ever feel like you are being asked to pay more than your fair share.  It's important to remember that all businesses have a responsibility to contribute their share, but it'...

It feels like every year you get a tax break. It's a big amount of money. Have you ever thought about why you always get a return? When a person has paid too much in taxes over the year, they often get a tax refund. At first, getting a big return might seem like a good thing. If you find it hard to save money, getting your tax refund at a good ti...

A W-4 form is a type of document that employees use to communicate their preferred methods of tax withholding to their employers. A W-4 form is a file provided and collected by the Internal Revenue Service or IRS. Workers must fill it out when beginning new employment or changing their withholding allowances. Ensuring that the appropriate amount ...

Pay your SUTA and FUTA taxes

  SUTA and FUTA are acronyms for federal and state unemployment taxes. SUTA is an abbreviation for the State Unemployment Tax Act, while FUTA is an abbreviation for the Federal Unemployment Tax Act. SUTA and FUTA taxes are meant to fund unemployment benefits for eligible workers who have been laid off. &nbsp...

FUTA taxes are a federal tax requirement employers must follow if specific criteria are met. FUTA taxes are used to help state and federal jobless compensation programs. The initiatives are designed to provide temporary financial help to workers who have lost their jobs.   FUTA taxes are calculated by determining a specified proportion of ...

The purpose of the State Unemployment Tax Act (SUTA) is to finance unemployment benefits for workers who lose their positions through no fault of their own. Employers in the United States are required to pay the SUTA to their respective state governments.    The SUTA tax is computed according to state-specific regulations. The taxable...

IRS Federal Form 941 is a fundamental document that companies have to file quarterly. Form 941 is utilized for filing federal deposits from employee payments, such as federal income tax, Social Security tax, and Medicare tax. It indicates the firm's Social Security and Medicare tax contributions. Understanding a 941 form is essential for all empl...

Tax preparations are key for any business or individual. They rely on their revenues and salaries, which taxes can consume a lot. Therefore, tax preparations ensure that a company or person pays the exact amount due, no more and no less. This ensures that their tax obligations are fulfilled while not going any more overboard than they have to. Af...

Tax season can be a challenging time for small business owners, freelancers and independent contractors. Using an online check stub maker to generate pay stubs certainly makes things easier when it comes to record-keeping. However, you also need to navigate the intricacies of tax forms, which can be complex – especially when the requirements ...

Becoming an employer means taking on responsibilities such as running a payroll. These are responsibilities you need to fulfill for your employees, and one of those responsibilities is withholding certain payroll taxes, such as the State Unemployment Tax Act (SUTA). Ensuring that your business complies with government regulations every year with t...

As a business owner who employs workers and staff, you need to understand the compliances and various responsibilities that come with contributing to Federal Unemployment Tax Act or FUTA. This article covers the topics you need to get to know FUTA taxes better. You will also discover calculations, 2023 rates, and credits. But before, we recommend...

Form 1099-NEC or nonemployee compensation 1099 makes a comeback in 2020 after a 38-year hiatus. Employers and business owners used Form 1099-MISC for the past few decades to report nonemployee compensation. This time around, they could now welcome the revived and revamped 1099-NEC form.   This article gives you knowledge about the IRS requi...