From the course: Taxes and Accounting for Music
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Payroll and sales tax
- Besides income taxes, there are two additional tax concerns for musicians. Payroll taxes. If your music business has employees, you need to calculate, track, and record payroll taxes and the resulting deductions. Based on the employee's W-4, you are required to withhold state and federal income taxes, as well as Social Security and Medicare taxes. If you don't want the hassle, consider an online payroll service, such as Paychex or QuickBooks Payroll Services. Sales tax. You must collect and pay sales tax if you're selling goods or merchandise directly to consumers in your state. Typically, if you reside in an area with sales tax, a sales tax jurisdiction, you will need a permit from the state or local government. Known as the resale or seller's permit. For assistance with sales tax in your state, check out the Sales Tax Institute, salestaxinstitute.com
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