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Business Taxes | Employment Taxes

Most types of businesses with employees must withhold employment taxes from their workers and send this tax to the IRS. Check the chart to see which forms your type of business (sole proprietor, partnership, corporation, etc.) must file.


(1) Have New Employees Fill Out Necessary Forms
(2) Withhold Tax from Employees and Send it to the IRS
(3) Pay Federal and State Unemployment Tax

(1) When you hire employees, they must fill out several forms:

I-9, Employment Eligibility Verification, to verify your employee is eligible to work in the US. This form must be filled out by both you and your employee and retained by you, the employer, as a record of your employee's legal status.

Form W-4, Employee's Withholding Allowance Certificate, to figure the amount of income tax to withhold from your employee's wages

Eligible employees with qualifying children should fill out Form W-5, the Earned Income Credit Advance Payment Certificate, so they may receive EIC (earned income credit) payments with their wages during the year.

(2) Taxes the Employer Must Withhold from Employees' Paychecks:

Federal income tax - based on the amount reported on the employee's W-4 form. Use this form to figure the amount of income tax to withhold from each employee's paycheck (described in Publication 15, Circular E, Employer's Tax Guide)

Social Security and Medicare Taxes (also known as "FICA"): these taxes pay into each employee's federal benefits after they retire or if they get sick.
Form to Use: Form 941, Employer's Federal Tax Return (instructions), or Form 943 for Farm Employers (instructions)

State Income Tax - Florida has no state income tax, only Unemployment tax. See below. It is therefore not necessary to withhold state income tax in Florida. This does not hold true in most other US states.

(3) Taxes the Employer Must Pay:

(A) Federal Unemployment Tax (FUTA) - this tax is used to provide employees with unemployment compensation in the case they are laid off through no fault of their own. This tax is not withheld from employee's paycheck but paid by the employer himself.

Form to Use: Form 940, Employer's Annual Federal Unemployment Tax Return

(B) State Unemployment Tax

First file an Application to Collect and/or Report Tax in Florida (Form DR-1) to determine if the employer is liable for the payment of this tax.

Once you file this report you should receive an Employer's Quarterly Report (UCT-6) form from the Florida Department of Revenue at the end of each quarter, which you must fill out and send to the state, along with your tax payment. The deadline for each quarter is as follows:

Calendar Quarter Report must be postmarked by:
Jan 1-Mar 31 April 30
Apr 1-Jun 30 July 31
July 1-Sept 30 Oct 31
Oct 1-Dec 31 Jan 31



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