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The Internal Revenue Service (IRS) is a United States government agency tasked with collecting yearly state and income tax from working residents and businesses. Most citizens pay income tax to the IRS annually, though in some cases quarterly prepayments are required for freelancers and businesses that exceed a given income threshold. The IRS is part of the Department of the Treasury.

IRS income tax is based on net income, or the amount left after legally allowed deductions have been taken from the gross (total) income. A person that falls within the poverty bracket may not be required to pay income tax at all, while a modest salary of 50,000 US Dollars (USD) per year can end up costing the earner approximately 20% of his or her net income in IRS taxes. Someone earning 120,000 USD annually might fall into a tax bracket closer to 25% of the net income. So IRS is like Income Tax. It collected form your Yearly income. Different country call it in different ways. But i’m sure every country has been implement this.

Source : http://www.wisegeek.com

Every company has been facing on payroll facilities. Payroll is major task that must be do every month. But did they concern about payroll law? Why is so important for payroll law?

When it comes to payroll laws the main laws that concern most people are the laws that apply to payroll taxes. In fact understanding payroll taxes as a small business owner is actually crucial in running a small business.

Here is a look at the payroll laws that you are going to need to know if you are running a business :

1) Payroll taxes are due on either semi-weekly or monthly. When they are due is actually going to depend on the size of your payroll. When you are paying payroll taxes the taxes that you are going to be responsible for are federal income tax, unemployment tax, Medicare, and Social Security on the federal level.

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