Government authorities lay taxes on people by adapting different ways and methods. Government Impose direct taxes on payroll .Many employees, producers and consumers want to know basic terminologies before hiring tax services.
Taxes are levied on people by every governments of a country to financially support and carry on development projects of the state. Therefore one can say that taxation is a main financial source of any country. These taxes are collected by different governing departments that are empowered by the government.
Tax calculation is done in many ways but there are two main categories of taxes which can be termed as direct taxes and indirect taxes. Direct taxes are imposed by government on large organizations, companies and individuals. Government collects these direct taxes annually in the form of income tax. On the other hand indirect taxes are imposed totally in a different way. The most common examples of indirect taxes are GST (general sales tax) on products and excise duties. Government levies these taxes on service of producer companies and these producers earn this tax from consumers of their product.
Tax accountants must also have the understanding of payroll tax calculation and relevant deductions to be made. For the citizens of United States generally two main types of deductions are considered while calculating payroll taxes. Employer must contribute to state tax by the deduction of 6.20% social security tax and 1.45% Medicare tax as a part of his payroll tax.
0 comments:
Post a Comment