Transcript Payroll taxes

TAX SYSTEM OF USA
Made by: AKRAMOVA DILNOZA
3rd course
• The United States of America is a federal
republic with autonomous state and local
governments. Taxes are imposed in the
United States at each of these levels.
These include taxes on income, payroll,
property, sales, imports, estates and gifts,
as well as various fees. In 2010 taxes
collected by federal, state and municipal
governments amounted to 24.8% of GDP.
CATEGORY OF TAXES
• Payroll taxes are imposed by the federal
and all state governments. These include
Social Security and Medicare taxes
imposed on both employers and employees,
at a combined rate of 15.3% (13.3% for
2011 and 2012). However, benefits are only
accrued on the first $106,800 of wages.
Employers must withhold income taxes on
wages.
Property taxes
• are imposed by most local governments and
many special purpose authorities based on
the fair market value of property. School
and other authorities are often separately
governed, and impose separate taxes.
Sales taxes
• are imposed by most states and some
localities on the price at retail sale of
many goods and some services. Sales tax
rates vary widely among jurisdictions,
from 0% to 16%, and may vary within a
jurisdiction based on the particular goods
or services taxed. Sales tax is collected by
the seller at the time of sale, or remitted
as use tax by buyers of taxable items who
did not pay sales tax.
• Types of taxpayers
• Taxes may be imposed on individuals
(natural persons), business entities,
estates, trusts, or other forms of
organization. Taxes may be based on
property, income, transactions, transfers,
importations of goods, business activities,
or a variety of factors, and are generally
imposed on the type of taxpayer for whom
such tax base is relevant
Income tax
• estimate of the total effective tax rate for
federal, state and local taxes (personal and
corporate income, payroll, property, sales, excise,
estate, etc.) The tax systems within each
jurisdiction may define taxable income separately.
Many states refer to some extent to federal
concepts for determining taxable income.
• Payroll taxes
• In the United States, payroll taxes are assessed
by the federal government, all fifty states, the
District of Columbia, and numerous cities. These
taxes are imposed on employers and employees
and on various compensation bases. They are
collected and paid to the taxing jurisdiction by
the employers.
• Social Security and Medicare taxes
• Main article: Federal Insurance Contributions Act tax
• Federal social insurance taxes are imposed equally on
employers and employees, consisting of a tax of 6.2% of
wages up to an annual wage maximum ($106,800 in 2010) for
Social Security plus a tax of 1.45% of total wages for
Medicare.For 2011, the employee's contribution was
reduced to 4.2%, while the employer's portion remained at
6.2%.
• Property taxes
• Most jurisdictions below the state level in the
United States impose a tax on interests in real
property (land, buildings, and permanent
improvements). Some jurisdictions also tax some
types of business personal property.Rules vary
widely by jurisdiction. Many overlapping
jurisdictions (counties, cities, school districts)
may have authority to tax the same property.Few
states impose a tax on the value of property.
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