2021-2022 Small Business Resource Guide | Page 34

LEGAL
Employment Taxes
When you have employees , you as the employer have certain employment tax responsibilities that you must pay and forms you must file . Employment taxes include the following :
Social security and Medicare taxes
Federal income tax withholding
Federal unemployment ( FUTA ) tax
Sales and Use Tax Permit
Every sole proprietorship , partnership , corporation or other organization going into business should call the Office of the State Comptroller to determine if a Sales and Use Tax
Permit is required for the product you sell , rent , lease or for the service you render . There is no fee for a sales and use tax permit ; however , you may be required to furnish a bond or security .
The Texas Comptroller of Public Accounts also has Tax Exempt Information . Under Texas law , the purchaser of a business is responsible for any sales tax owed by the previous owners . Additionally , the law requires a purchaser to withhold from the purchase price any amount needed to cover a sales tax debt .
You should have the following information before going to the state comptroller : 1 . Social Security Number ( SSN ): a ) Your SSN and address if you own the business , or b ) Each partner ’ s SSN if the business is a partnership , or c ) SSN and address for each officer and director if the business is a corporation .
2 . The Federal Employer Identification Number ( EIN ) assigned by the Internal Revenue Service if you hire employees .
3 . Corporate Charter or Certificate of Authority Number assigned to your corporation by the Texas Secretary of State and the effective date of permission to do business in Texas , if the business is a corporation .
Penalty for operating without a Sales and Use Tax Permit
Anyone who operates a retail business in Texas without a Sales and Use Tax Permit is guilty of a crime . In addition , it is a crime if an officer of any corporation operates the business without a Sales and Use Tax Permit or after a permit has been suspended . The fine is up to $ 500 a day for each day the business operates without a permit .
Hiring Incentives
Work Opportunity Tax Credit ( WOTC ): A federal income tax benefit administered by the U . S . Department of Labor ( DOL ) for private , for-profit businesses who hire from specific targeted populations . The credit could provide direct federal tax savings to your business ranging from $ 1,200 to $ 9,000 per qualified employee .
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