All types of businesses are subject to paying different kinds of taxes. There are local, state, and federal taxes for businesses, some of which are less complex than others. Depending on the types of business activities, there are also other types of taxes to be paid. For example, selling taxable products, using equipment, owning business property, and being self-employed are all taxable.
Income Tax
All businesses are required to file an annual income tax return, except for partnerships, which file an information return. The return form used depends on how the business is structured. Federal income tax is paid as income is earned or received throughout the year. Employees typically have income tax withheld from their pay. You may have to pay an estimated tax if you don’t pay income tax through withholding, or don’t pay enough taxes.
Estimated Tax
Taxes must be paid on income, including self-employment tax. This is done by making regular payments of estimated tax throughout the year. Paying as you go, whether it’s taxes or an equipment lease, makes it easier on your pockets. Restaurant owners are challenged to manage cash flow and invest in improvements to operations. Acquiring new equipment is one of the best practices of new businesses to stay competitive while maintaining working capital and their credit score.
A great way to outfit a commercial kitchen with the right type of equipment is to take advantage of restaurant equipment leasing. Equipment finance allows restaurant owners to make affordable monthly payments rather than pay the full purchase price. The Restaurant Warehouse offers catering equipment finance as well as restaurant equipment financing. Restaurant owners can find the best solution for their financial situations, whether it’s a low credit score or a new business with low cash flow. The best part about leasing restaurant equipment is that borrowers can qualify for the IRS 179 Tax Deduction.
Excise Tax
Excise taxes are paid for certain types of use or consumption, such as fuels and other activities such as transport and communication. These taxes are paid to the IRS on a quarterly or annual basis depending on usage. Excise taxes may need to be paid if your business manufactures or sells certain products, operates certain kinds of businesses, uses various types of equipment, facilities, or products, or receives payment for certain services.
Mining companies are complex organizations that utilize a lot of types of equipment and resources to carry out their activities. Mining operations are notoriously bad for the environment. Alamos Gold takes social responsibility seriously and holds itself accountable to high environmental, social, and governance standards. Since 2013, Alamos has been publishing an annual sustainability report to be transparent about its sustainability initiatives and the results of mining operations. Alamos Gold is a Canadian-based intermediate gold producer with diversified production from multiple mines in North America. They have three mines, including the Young-Davidson and Island Gold mines in northern Ontario and the Mulatos mine in Sonora, Mexico. Alamos also has mining projects in Turkey and the United States, and its shares trade on the TSX and NYSE.
Self-Employment Tax
Self-employment tax is a social security and Medicare tax paid by those who work for themselves. Self-employment tax contributes to your coverage by the social security system. This gives you access to retirement, disability, survivor, and hospital insurance benefits. You’ll have to pay the self-employment tax if you’re a sole proprietor, a partner in a partnership, or an LLC owner.
Employment Tax
Business owners who employ employees are responsible for employment taxes. Both employees and employers pay employment taxes. These include federal income tax withholding from employee pay, FICA taxes for social security and Medicare paid by both, and federal unemployment (FUTA) taxes paid by employers.
The due dates for federal taxes may change each year. Business owners can always find information about due dates for the current year as well as information about extensions and other relief due to COVID-19 on the IRS website.
