Here is a list of the common taxes businesses are required to pay:
Federal Income Tax.
State Income Tax.
Medicare & Social Security payroll tax @ 7.65% of wages.
Federal Unemployment Tax – usually $56 per employee.
State Business & Occupation Tax for all states in which business is conducted.
Use Tax on purchases when sales tax was not paid.
State Unemployment Insurance.
State Worker’s Compensation Insurance.
Business Licenses for all states, cities and counties in which business is conducted.
Transportation taxes for bus services in Tri-Met, Clackamas and Lane Transit districts.
Personal property tax.
Real property tax.
Heavy Vehicle fuel tax.
In addition business have to collect, report on and remit:
Sales taxes received, for every state in which business is conducted.
Payroll withholdings from employees.
W-2s for employees.
1099 forms for various expenses paid such rent, interest, subcontractors, dividends, etc.
This is not an exhaustive list. The amount of time and resources spent on complying with tax laws is significant to most businesses. Failure to properly file and pay all the above, results in substantial penalties and interest.
March 7, 2010
Personal Property Taxes
One of the many taxes businesses have to pay is a tax on the equipment, supplies and professional libraries on hand at mid-night December 31. This tax is the same rate as real property tax. It is assessed by and paid to the County. Oregon’s report was due March 1st, Washington’s are due April 30th. This tax comes as a surprise to many business owners. If you have not filed in previous years and/or you have not received your 2010 report by early March for Oregon or early April for Washington, call your County to find out why you haven’t received it.