Established in the 1930s, the Federal Unemployment Tax Act (FUTA) was put in place to mitigate the blow of involuntary unemployment. The current law requires that employers file Form 940. The taxes they pay are not deducted from wages but rather come directly from the employer based on the number of employees the company has. FUTA […]
According to the Federal Unemployment Tax Act (FUTA), employers are required to pay federal unemployment taxes to support the government’s benefit programs for involuntarily unemployed individuals. If an employer’s FUTA payroll liability exceeds $500 per quarter, the company must make quarterly payments to the Internal Revenue Service. U.S. Aliens and FUTA The Internal Revenue Service […]
Noncitizens who are ineligible for a Social Security number need an Individual Taxpayer Identification Number (ITIN) to file a U.S. federal tax return. To apply for an ITIN, noncitizens must fill out Form W-7. Follow along with our step-by-step guide to complete the process with ease. Step 1 – Reason for Filing On the right side […]
Form W-2 reports an employee’s total earnings for the year, as well as the amount of federal, state and other taxes withheld from his or her paycheck. As an employer, preparing your employees’ Form W-2s is one of your most crucial responsibilities, especially since the penalties for incorrect or late filing can be quite steep. […]
Every quarter, you must file your business’s payroll tax activity with the IRS via Form 941. This is strictly an informational report. The easiest and quickest way to pay for your taxes will be via The Electronic Federal Tax Payment System. If you manage your payroll using a software or service like ours, you can seamlessly pull all […]
If your nonprofit organization is looking to be exempt from federal taxes, you must fill out Form 1023. Just a warning, it’s a long, laborious process to complete this 31-page form, especially if you’re doing it yourself. That’s why we compiled some of the most frequently asked questions we’ve received over the past couple of […]
Form 1040A is one of the three tax forms — along with Form 1040 and Form 1040EZ — that most taxpayers use to file their annual tax returns. Compared to Form 1040 and Form 1040EZ, Form 1040A is more of an in-between option. It is shorter and less detailed than the traditional Form 1040, and it also offers more […]
U.S. taxpayers use Form 1040 to file their annual income tax returns. Before 2018, there were 3 versions: 1040, 1040-EZ, and 1040-A. However, the IRS updated the Form 1040 and simplified the 3 versions into 1. What Changes Were Made to Form 1040? Forms 1040,1040A and 1040EZ have been replaced with one Form 1040 that all taxpayers will […]
As an owner of a small or medium-sized business, you’re faced with plenty of responsibilities, and reporting and paying unemployment tax – or FUTA tax – is one of them. With the FUTA tax, you must pay a rate of 6% on the first $7,000 of an employee’s wage. The funds generated from this tax […]
Owning a business has a major impact on how your taxes manifest each year, so it’s important the Internal Revenue Service is aware of any changes in your circumstances. According to section 1060 of the Internal Revenue Code, the IRS requires that you fill out and file Form 8594 when you’re buying or selling a business. Understanding […]
