Taxes

AAA Print

Overview

Taxes help fund projects, create jobs, fight wars, fund schools, create hospitals, renovate roads, and run government administrations. Without taxes, the United States economy would come to a standstill. Individuals and businesses pay taxes on the city, county, state, and national levels. Different government agencies fund different projects, but all government agencies require taxes to operate. Taxes will vary based on your city, state, and local economic conditions. Nonprofit organizations are tax-exempt, which means that they do not need to pay taxes.

How It Works

Taxes are paid by different methods. Personal income taxes require employees to pay a fixed percent of their income to the state and federal government. Cities require companies to pay business license taxes which are calculated based on a variety of factors include company size, payroll, revenue, number of employees, and flat fees. Rules for taxation vary for different types of companies. Companies typically work with accountants to make sure that they are filing their taxes correctly to ensure maximum savings.

Benefits

Taxes help the government generate an income improve public infrastructure. Schools, roads, colleges, and governments receive tax money. Tax money also stabilizes the economy by providing unemployment, homeless, and welfare service. Tax money also funds the military.

Costs

Your taxes will vary based on the type and size of your business. You can also deduct certain expenses from your taxable revenue. Deductible expenditures include traveling expenses, lease costs, and rental equipment. You should consider working with an accountant or consultant to determine what taxes your business will pay.

Timing

Taxes can be paid on a monthly, quarterly, or annual basis. You will pay taxes in accordance with the regulations in your area and industry. The government will require businesses to file income taxes every three months.

Last Updated: December 19, 2011
AAA Print

From around the web

Business related videos

Paychex Payroll Services: Sign up Today!