Small enterprise Tax Deductions - "F" is For Fica, Futa & Fido

Medicare Premiums Tax Deductible - Small enterprise Tax Deductions - "F" is For Fica, Futa & Fido

Good evening. Yesterday, I discovered Medicare Premiums Tax Deductible - Small enterprise Tax Deductions - "F" is For Fica, Futa & Fido. Which is very helpful to me and you. Small enterprise Tax Deductions - "F" is For Fica, Futa & Fido

If you own a small enterprise and are looking for deductions, don't miss out on these. The first two you've probably heard about but don't indubitably understand (until now). The third one may seem far-fetched (pardon the pun) but is legitimate if the circumstances described below fit your situation.

What I said. It shouldn't be the final outcome that the actual about Medicare Premiums Tax Deductible. You look at this article for facts about that need to know is Medicare Premiums Tax Deductible.

Medicare Premiums Tax Deductible

1. Fica.

This acronym stands for Federal insurance Contributions Act, which is legal-eze for the employer's share of collective security and Medicare tax. In 2008, all employees must pay 6.2% of their first 2,000 in payment (wages, salary, bonuses, etc) to the federal government for collective security tax. In 2009, they will pay the same percentage to the first 6,800. This 6.2% is deducted from the employee's gross wage, so while the gross wage is an boss expense, the collective security deduction is not.

Medicare works somewhat differently in that the tax rate is only 1.45%, but there is no limit to the whole of payment subject to the tax.

But the boss is obligated to match both the employee's collective security and Medicare withholding amounts, and this is a deduction for the boss because it doesn't come out of the employee's paycheck. Instead, it comes right out of the employer's pocket.

So don't miss this expense. It is base for small enterprise owners to deduct the wages but forget to deduct the with payroll taxes.

2. Futa

This stands for the Federal Unemployment Tax Act. It represents the federal unemployment tax that all employers must pay out of their own pocket. The bad news (for the employer) is that unlike Fica, employees conduce nothing to this tax. The good news is that for most employers, Futa ends up being a much smaller price than Fica. It usually amounts to 0.8% of the first ,000 in wages or wages paid to each worker each year, or a maximum of /year. For part-time employees who earn less than ,000, you end up paying even less. But don't overlook this one. When it comes to taxes, every wee deduction helps. And even a "small" enterprise can have 50 or more employees, and if each of them has at least ,000 in yearly wages, you're looking at a deduction of ,800. For an boss with 100 employees, your federal unemployment tax could exceed ,000.

3. Fido

Fido is the name of a dog. What's that got to do with small enterprise tax deductions? Well, isn't it inherent that you have a dog that lives on the premises of your business? And could it not also be inherent that this dog is not your pet, but rather a watchdog for the business? If that's the case, then the cost of feeding and maintaining the dog is a bona fide, and therefore deductible, enterprise expense.

I hope you obtain new knowledge about Medicare Premiums Tax Deductible. Where you can offer easy use in your everyday life. And most importantly, your reaction is passed about Medicare Premiums Tax Deductible.