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Informative Articles

4 Bulletproof Strategies that Let Real Estate Professionals Cut Their Federal Taxes
Never Invest a Cent Without Considering the Likely Tax Impact on Yourself Realtors® and others in the real estate field see first-hand the steady increase in property values. Everyday, you assist both buyers and sellers to profit from it. You...

Do You Need A Financial Planner?
No matter how much money you make, it pays to keep on top of money coming in and going out. Even if you do a good job of that, there are important times in your life when talking with a professional adviser makes sense. Almost every major...

How Much Do You Really Need to Make as a WAHM?
Many of you have been thinking about staying home with the kids, but aren’t sure they can afford to do so. Living expenses are so high these days, it is almost impossible to make meats end on one income. The idea of coming up with an income close to...

How To Raise Money For Starting A Business
The task of raising money for a business is not as difficult as most people seem to think. This is especially true when you have an idea that can make you and your backers rich. Actually, there's more money available for new business ventures...

Hurricane Katrina - How To Use Your Business Loss To Get A Refund on 2004 Taxes
With the massive losses caused by Katrina, the economy of the Gulf Coast region is in extremely bad shape. Fortunately, there is a quirk in the tax code that can help you generate a large refund from your 2004 taxes. Apply Losses to 2004 Taxes...

 
Local Taxes

Local taxes are an even further extension of the federal income tax withholding, just on the local level. Businesses that operate in a particular state will generally be able to access information their particular locality through their state's revenue office. Taxes withheld on the local level will not usually require a separate form. Local government entities will generally require that you file a copy of the state form with their local offices. Employers will generally file W-2 information and the information return accompanying W-2's with the IRS, the applicable state agency, and then with each necessary local level. Actual tax deposits are generally made on the state level, and each state revenue office will transmit local taxes to the proper tax office. There is no social security or Medicare tax withheld at this level and usually there are no unemployment taxes withheld at the local level. Businesses are liable for withholding and reporting of the wages earned by each employee, and the timely filing of such withholding and reporting just as at the federal and state level. Quite often, however, the local offices will require only an information return, as transmittal of actual tax withholding will come from the applicable

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state. Local tax rates are even lower than those of the state level, and sometimes are referred to as a permit tax. Some cities charge a flat fee for employees to come into their city and work, especially if they reside outside the city limits or in another city altogether. Small businesses can refer to their individual states' Department of Revenue, Department of Industrial Relations, Employment offices, or Small Business Administration for direction and assistance in complying with all state and local laws. Additional information may be obtained thru the IRS website at www.irs.gov . There are numerous publications that provide direction and instructions for small businesses such as IRS Publication 15, Circular E Employers Tax Guide, and links to individual state and local websites.

About the author:

Matt Bacak became "#1 Best Selling Author" in just a few short hours. Recent Entrepreneur Magazine's e-Biz radio show host is turning Authors, Speakers, and Experts into Overnight Success Stories. Discover The Secrets To Unleash The Powerful Promoter In You! Sign up for Matt Bacak's Promoting Tips Ezine ($100 value) just visit his website at http://www.powerfulpromoter.com or http://promotingtips.com