Taxes

Question 1

What is the earning by individual requires payment of self employment taxes?

Answer 1

You must pay self-employment taxes if your net earnings were $400 or more. Form SE1040

Question 2

Form 1099-MISC

Answer 2

Form 1099-MISC is most commonly used by payers to report payments made in the course of a trade or business to others for services.

you paid someone who is not your employee, such as a subcontractor, attorney or accountant $600 or more for services provided during the year, a Form 1099-MISC needs to be completed.

Question 3

What are the Maryland State Income Tax Forms

Answer 3

1. Form 500 – required by domestic and foreign corporations, corporate members of partnerships
2. Form 510 – required by “S” Corporations and Limited Liability Companies
3. Form 500CR – used for business tax credits

Question 4

What license all Maryland businesses need?

Answer 4

A Maryland business license is required for any new business. This license is separate and independent from any other licenses required by the Department of Labor, Licensing and Regulation. The license may be issued at the county of the Clerk of the Court where the business is located.

Question 5

When hired, every employee must provide a ______, showing how many allowances he or she is claiming.

Answer 5

W-4

Question 6

In a _____________ , the owner pays income taxes on the net profit, generated from the business at the owner’s individual tax rate.

Answer 6

sole proprietorship

Question 7

Do employees contribute to unemployment tax?

Answer 7

No

Question 8

An LLC can elect or choose to be taxed as a sole proprietorship, a partnership, or a corporation.

Answer 8

True

Question 9

Form 1099-MISC must generally be filed for each independent contractor or business entity that is not a corporation, and to which at least $_____ has been paid for services rendered in one calendar year.

Answer 9

600

Question 10

Social Security and Medicare taxes are paid by __________ .

Answer 10

both the employer and the employee

Question 11

Most new employers are monthly depositers for the first calendar year of their business. This means that payroll taxes must be deposited by the ____ of the month following the end of the payroll period.

Answer 11

the 15th day

Question 12

Which of the following must be held from employee wages?

Answer 12

Federal Income Tax
State Income Tax
Social Security Tax

Question 13

You must pay self-employment taxes if your net earnings were $______ or more.

Answer 13

$400

Question 14

A Maryland business license is required for any new business.

Answer 14

True