The federal income tax is a pay-as-you-go tax, its paid if you earn or receive income during the year.
Generally, you must pay taxes on income, including self-employment tax, by making regular payments of estimated tax during the year.
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Payments of SE tax contribute to coverage under the social security system. Social security coverage provides with retirement benefits, disability benefits, survivor benefits, and hospital insurance benefits.
We have to pay SE tax and file Schedule SE (Form 1040) if either of the following applies.
- If your net earnings from self-employment were $400 or more.
- If you work for a church or a qualified church-controlled organization (other than as a minister or member of a religious order) that elected an exemption from social security and Medicare taxes, you are subject to SE tax if you receive $108.28 or more in wages from the church or organization.
When we have employees, the employer has certain employment tax responsibilities that must be paid and forms to be filed. Employment taxes include the following:
- Social Security and Medicare Taxes
- Federal Income Tax Withholding
- Federal Unemployment (FUTA) Tax
Excise Taxes and forms to be filed if any of the following is done:
- Manufacture or sell certain products
- Operate certain kinds of businesses
- Use various kinds of equipment, facilities, or products
- Receive payment for certain services
The federal excise taxes reported on Form 720, consist of several broad categories of taxes, including the following:
- Environmental Taxes.
- Communications and Air Transportation Taxes
- Fuel Taxes.
- Tax on the first retail sale of heavy trucks, trailers, and tractors
- Manufacturers taxes on the sale or use of a variety of different articles
There is federal excise tax on certain trucks, truck tractors, and buses used on public highways. The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more.
Liable for the federal excise tax on wagering, if in the business of accepting wagers or conducting a wagering pool or lottery.
Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering.