For those who are planning to start a new business, it is important to learn about the small business tax rate. It is one of the items that people often forget about it. There are some types of taxes that people need to pay. It all depends on the type of business they are running. They might need to pay only one or two taxes while others should pay more. The average number is about 19,8%.
There are some factors that affect the nominal rate. For example, the total of the employees, the monthly income, and the product or service that it provides. Many people are still confused with the small business tax rate. Whereas it is important for them to include it in their financial report. To help users about it, here are the most common taxes for small businesses:
1. Income Tax
This type of tax is a type that almost everybody needs to pay. For people who are working as an employee would also need to pay it from their salary. As for small business, they need to pay it from the total turnover for each month. The nominal itself is also different for each business. Usually, the user would include the tax fee into the product price.
2. Employee Tax
Another thing that people should know about their small business tax rate is the employee tax. Managing this might be complicated because when users are late to pay their staff, the users would get a penalty. Users must also provide the employee’s social security and medical tax. Some users choose to hire a person to manage this rather than doing it themselves.
3. Property Tax
Just like other real estate, every business would also need to pay the property tax. It could be the office, the store or even both. The size of the land would affect the nominal that the user needs to pay. The other thing that would also affect is the total floors of the building the location of the office/store.
4. Advertising Tax
Another small business tax rate cost is advertising. A user usually needs to pay it, when the office or store has a logo or mini-billboard in front of it, even a small banner as well. The size of the board would affect the tax price. If the user cannot pay or pay it late, the officers would usually put a warning sticker on it until the user has paid the tax.
5. Sales Tax
This type is tax could usually be found in restaurants and cafes. When paying the bill, on the bottom of the receipt there is “service tax” added. The customer would need to pay the charge as a part of their purchase. However, not all country requires sales tax such as in the United States.
Getting to know the small business tax rate might take some time. It is better to learn about it from the experts. In addition, remember to pay the taxes on time before the deadline comes or users would have to pay fine.