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.

There are certain requirements for the entities subject to federal income tax on corporations- the business entity should not be an S corporation, it should be formed in the US or it should have its business in the US. Business entities such as such as partnerships and limited liability companies, which are not corporations, under certain conditions may be required to pay the Federal Corporate taxes.

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.

The beginning of the excise tax goes back in 1794. This was done under Alexander Hamilton's tax package and since then the tax has been opposed and fought. But the main intention to charge excise tax is to raise revenue and to discourage a particular behavior. This is justified on both the grounds by the fact that these taxes are levied on alcohol, fuel, tobacco.

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.

The amount of tax levied on depends on the tax bracket and the time frame for which the investment was held before selling. There are two categories in which the tax payment is made Short term capital gains tax rate and Long term capital gain tax rate.