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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