Taxability at Entity Level How certain entities handle their tax obligations ✅ C- Corporation · Files tax returns using Form 1120 · Pays taxes directly at the entity level ✅ Tax-Exempt Non-Profit Organizations (NPOs) · Required to file returns using Form 990 · Generally, not required to pay taxes if they maintain their tax-exempt status.
Topic: Taxability – Flow Through Entities Flow Through Entities play a unique role in taxation. ✅ Entities like Partnerships (Form 1065) and S-Corporations (Form 1120S) file returns at the corporate level. ✅ However, the taxes are paid at the individual level by shareholders or partners. ✅ Income passes through to individuals via Schedule K-1, and…
Taxability – Flow Through Entities / Pass Through Flow Through Entities play a unique role in taxation. ✅ Entities like Partnerships (Form 1065) and S-Corporations (Form 1120S) file returns at the corporate level. ✅ However, the taxes are paid at the individual level by shareholders or partners. ✅ Income passes through to individuals via Schedule…
📚 Topic: Taxability in the Hands of Different Taxpayers (Part 1 – Individuals) Understanding who is responsible for tax filing and payments. Let’s start with Individuals: ✅ Taxes are paid and returns are filed at the individual level. ✅ This category includes Sole Proprietors. ✅ Filing is done through Form 1040.
Topic: Types of Tax Filers in the USA Here’s a quick summary: 1 Individuals · Other than sole proprietors: Form 1040 · Sole Proprietors: Form 1040 with Schedule C 2 Business Entities · C Corporation: Form 1120 · S Corporation: Form 1120S · Partnership: Form 1065 · Non-Profit Organization: Form 990 3 Estate & Trust · Form 1041
US taxation occurs at three levels (Taxation Levels in the US) 1. Federal Taxation (Central Government) o Applies to all individuals and businesses in the US. o Types: Income Tax, Corporate Tax, Payroll Tax, Excise Tax. o Example: IRS collects income tax based on earnings. 2. State Taxation o Applied by individual states. o Types: State Income Tax, Sales Tax, State Corporate…
US Taxation: A Quick Guide for Beginners! Introduces the basics of the US Taxation System, especially useful for those starting in US Accounting, Bookkeeping, or Taxation roles. Key Topics ✅ Taxation Levels in the USA ✅ Types of Tax Filers ✅ Various US Tax Forms ✅ Taxability in the Hands of Different Taxpayers This knowledge…
💼 US Payroll – Step 8: Deposit Payroll Taxes on Time (to Federal Taxes (IRS) / State Taxes (State Agencies) 💼US Payroll – Payroll Tax Deposits :- 1️⃣ Federal Taxes (IRS): *Who: Internal Revenue Service (IRS) *What: Federal income tax withholding, Social Security, Medicare, FUTA *How: Electronically via EFTPS (Electronic Federal Tax Payment System) or…
💼 US Payroll – Step 6: Calculate Payroll Taxes (Per Run) 🧾 What It Means:- Payroll taxes are shared between employees and employers — covering federal income tax, Social Security, Medicare, and unemployment taxes. Example – just like in India where PF (Provident Fund) has both portions (employees and employers). The only difference in the…
💼US Payroll – Step 5: Timekeeping & Gross Pay Calculation: – 1️⃣ Collect Time Data – Get timesheets/timecards for hourly staff or confirm salaries. 👉 Example: Hourly employee logs 45 hours; salaried employee gets fixed pay. 2️⃣ Calculate Gross Pay – Hours × Rate + Bonuses + Commissions + Taxable Reimbursements. 👉 Example: 40 hrs…
