Taxes

Federal

» Federal Corporate Income Tax

Due: March 15 (if the business’s fiscal year corresponds to the calendar year)

C-Corporations pay income tax using federal form 1120. A limited liability company classified as a corporation for federal tax purposes must file a federal corporate income tax form.

An S-Corporation generally is not liable for federal income tax, but it must file a federal form 1120S annually and pay tax on certain investment income and capital gains. Returns are due by the 15th day of the third month after the close of the corporation’s fiscal year.

» Federal Employment Tax
(Income, Medicare and Social Security)

Due: Monthly or semiweekly (in most cases)

Businesses that have employees must withhold federal income tax, Medicare tax and Social Security tax from employees’ wages. In most cases you pay the tax monthly or semiweekly, either by the Electronic Federal Tax Payment System (required if deposits total more than $200,000 annually) or by using form 8109-B, Federal Tax Deposit Coupons. Report the tax on form 941, Employer’s Quarterly Federal Tax Return.

Small employers that have an employment tax liability of $1,000 or less for the year may now pay annually on Jan. 31. File form 944, Employer’s Annual Federal Tax Return.

» Federal Unemployment Tax

Due: January 31, April 30, July 31, October 31

Floridians are required to report wages and pay taxes to the Federal Unemployment Compensation program if they paid $1,500 in wages within a calendar quarter or have employed one or more people for any portion of a day in 20 different weeks during the calendar year. The tax rate is 6.2% on the first $7,000 of wages, but you can take a credit for the amount paid in state unemployment tax up to 5.4%, which is the maximum rate in Florida. If a business’s FUTA tax liability for a quarter is $500 or less, the tax may be held over to the next quarter and added to that quarter’s tax liability. Pay the tax either by the Electronic Federal Tax Payment System or by using form 8109-B, Federal Tax Deposit Coupons. Report the tax annually on federal form 940 or 940-PR (Spanish).

State

» Florida Corporate Income Tax

Due: April 1 (if the business’s fiscal year corresponds to the calendar year)

Corporations doing business in Florida are subject to the 5.5% tax. C-Corporations pay the tax on form F-1120. If a corporation owes more than $2,500 annually in Florida corporate income tax, it must make estimated tax payments on form F-1120ES on or before the first day of the fifth, seventh and tenth month of the taxable year and the first month of the following tax year.

If the business shows net income of $45,000 or less and conducts all business in Florida, it may file the short form, F-1120A.

Limited liability companies classified as a corporation for federal tax purposes must file a Florida corporate income tax return. Limited liability companies that are classified as partnerships for federal tax purposes are required to file a Florida Partnership Information Return (form F-1065) if they are doing business in Florida and one or more of their owners are corporations.

An S-Corporation in Florida files an F-1120 corporate income tax return for the first year it does business in the state. Unless there is federal taxable income at the corporate level, no state filing is required for subsequent years.

Tags: Florida Small Business