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Unemployment compensation tax is for those of you with a workforce. The tax is collected by your state's Department of Labor. This tax funds unemployment compensation to individuals who typically lose a job through no fault of their own. For a detailed description of your state's tax rate and procedures go to the AFSCME State Departments of Labor directory.
Sales taxes represent state and local revenue streams from the sale of tangible products. If you sell product directly to the end-user, your business is responsible for collecting the sales tax and passing it on directly to your state's Department of Revenue. Even if the tax is for more local entities within the state you will typically pass it on to the state, which will then redistribute the funds. I suggest you access your state's Department of Revenue directory at the National Association of State Information Resource Executives (NASRE) web site.
Excise taxes can come in two forms:
- A penalty by a company for failure to comply to certain state statutes or procedures, and
- A periodic license fee to perform a certain function within the specific state charging the tax, typically a tax in addition to another sales tax.
State and local taxing districts commonly exercise this revenue option.
Along with excise fees, usage, lodging, intangible and fuel taxes are examples most often related to businesses in specific categories of product and service. The Federation of Tax Administrators and other hyperlinks noted above should provide you adequate sources of information about all tax obligations regarding your business. It's one thing to pay the tax. It's another to pay penalties due to ignorance. Know your obligations.
© 2000, Carroll Stephen Windhaus
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