Payroll tax is a tax imposed by the Federal government on both the employer as well as the employee. This is done in order to fund Medicare and social security which provides benefits to retirees, children of deceased workers and the disabled. Hence, in other words payroll tax is used for the benefits of old-age people and for health benefits.
The rules and regulations regarding the payroll tax and its deductions are very strict and even a small miscalculation regarding the taxes can cause serious trouble. One should, therefore be very careful in all the proceedings regarding payroll tax calculations. The first step is to get all the employees to fill up the W-4 form. The form helps in calculating the taxes on the basis of marital status of the employee and the number of dependants.
At present, the social security tax that is withheld from the wages of the employee is calculated at 6.2% of total salary of his. The same amount is contributed by the organization.
Federal corporate tax is imposed by the Federal Government as well as by most of the state government. As the term suggests that the tax is implied on the corporations and this is one of the most significant taxes, in terms of the tax rates and its complex rules and regulations.
Excise tax also know as excise duty, is a type of special tax that is charged on the so-called ‘luxury items’; the items which cannot be afforded by poor families. These ‘luxury items’ include cigarettes, alcohol and gasoline. This is also referred as sin tax and may consist of a flat amount for a certain quantity of the item purchased. However, in US excise tax refers to any tax other than capitation or property tax or it is also termed as excise in statutory law sense.
Capital gains tax is incurred on all the profits resulting from the sales of assets such as stocks, bonds and property. This is probably the tax which the corporations or individuals pay on the net total of the capital gains. This is just similar to the income tax paid on other sorts of income. The money coming from this tax is provided to entrepreneurs and to investors making capital investments.