FICA

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Why Does Iowa Make You Add Federal Self-Employment Tax to Income?

By | April 10th, 2017|Categories: State Taxes|Tags: , , |

On the Iowa 1040, taxpayers are required to add federal self-employment tax for the current year into income for Iowa purposes. Why does Iowa require this?

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Glossary: Payroll Taxes

By | November 1st, 2016|Categories: Glossary|Tags: , |

Payroll tax refers to taxes an employer pays when the employer has employees.

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What Taxes is a Tax-Exempt Organization Responsible For?

By | October 6th, 2016|Categories: Small Business Tax and Accounting|Tags: , , , , |

Tax-exempt organizations are exempted from paying income tax and federal unemployment tax... but they might have other tax liabilities that they’re responsible for.

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Choosing a Business Entity: S-Corporation

By | November 19th, 2015|Categories: Small Business Tax and Accounting|Tags: , , |

S-corporations share many of the same characteristics of partnerships. The biggest difference is, owners who work in the business day-to-day are paid a salary.

Self-Employment Tax Calculation: The Basics

By | July 14th, 2015|Categories: Small Business Tax and Accounting|Tags: , , , |

Here's a basic overview of the self-employment tax calculation for self-employed people. These are the steps for the calculation: Determine your net self-employment income. For most self-employed people, this will be the net profit from their Schedule C. Multiply by 92.35% (.9235). Multiply that result by 15.3%. This gives you the amount of self-employment tax you [...]

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