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U.S. Government
(www.irs.gov)
Starting business requires familiarity with the business laws and regulations at the Federal, State and Local levels. An overview of these laws and regulations is given to assist the business owner in their awareness of them and help them be better organized in running their business.
Compliancy requirements vary by business structure, industry and busiiness location, and therefore, it is strongly recommended that each business owner review their particular business' obligations with their attorney and/or accountant.
Intial Contact
Federal Government regulations are primarily administered through the IRS which may be contacted on line or at 1-800-829-1040. The first requirement for the business is usually the Federal Tax Identification Number which is required if the business is incorporated or is a business with employees. The ID # may be obtained via a toll free number at 866-816-2065.
In the event the business has employees, the business will be required to administrate the collection of personal income tax, social security and ??.. . Keep in mind that the State will accept some Federal forms in lieau of their own to reduce paperwork.
Another requirement is the filing of annual business tax returns, and if desired, prior to this the election of Sub Chapter S ( Form SS-4) at the Federal level which must be elected within a short window from time of incorporation or deferred to the following year. State approval of a Sub-S election usually follows the Federal approval.
Employment Requirements
Once you hire employees, you are responsible for the following employment taxes:
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Federal Income Tax Withholding
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Social Security and Medicare Taxes
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Federal Unemployment Tax Act (FUTA)
A W-4 form will be required from the employee that documents their payroll exemptions and determines the amount of payroll tax to be held. Publications 15 & 15A, Employers Tax Guide and Employers Supplemental Tax Guide, respectively, will assist in calculating the amount to withhold.
The I-9 Form is required for Immigation and Naturalization to insure that the individual is a legal resident.
Social Security and Medicare fall under the Federal Insurance Contributions Act (FICA) where tax is withheld from employees pay and the employer pays a matching amount that will pay for future benefits of workers and their families. Social Security primarily covers old age, survivors and disability insurance, while Medicare pays for hospital insurance benefits.
Once taxes are withheld they are required to be remitted using Form 941, Employer's Quarterly Tax Return and Form 943, Employers Annual Federal Tax Return.
FUTA is the Federal part of paying unemployment tax to provide benefits to those workers who lose their job. The employer is solely responsible for paying this tax and no money is taken from the employees payroll. FUTA taxes are reported on Form 940, Employers Annual Federal Unemployment Tax Return, or the 940-EZ, if qualified.
Depositing Taxes
Employers are responsible for depositing income tax withheld and the employer and employee's social security and Medicare taxes on a periodic basis, either my mail, at a local designated depository or by Electronic Funds Transfer.
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Government 
