Corporate Income Tax
- Total revenue minus cost of goods sold,
- Total revenue minus employee compensation and benefits, or
- 70% of total revenue. The taxable margin is then apportioned by the percentage of the entity's business done in Texas...
Sales and Use Tax
|State Sales Tax||6.25%|
|Municipal - City of El Paso||1.00%|
|County- El Paso County||0.50%|
|Municipal Transit-Sun City Area Transit Tax||0.50%|
|Total El Paso Sales and Use Tax||8.25%|
The franchise tax is imposed on all corporations that do business in the state or are chartered or authorized to do business in the state.
Payroll Tax: Social Security Tax Rate- Employers are required to withhold 6.2 % of employees’ wages for social security taxes and to pay a matching amount (6.2%) until the employee reaches the wage base limit of 110,100.
Medicare Tax Rate- Employers will withhold 1.45% of an employee’s wages and pay a matching amount for Medicare tax (1.45%). There is no wage base for the Medicare portion.
Federal Unemployment Tax (FUTA): FUTA rate- 6.0% for 2012. The wage base for FUTA is $7,000.
State Unemployment Tax Rates (SUTA): A new employer in Texas is levied an unemployment tax, at a rate of 2.7% or the applicable industry average tax rate, whichever is higher. The tax is levied against the first $9,000 of each worker’s annual salary.
Federal Labor Law: Effective July 24, 2007, the federal minimum wage increased to $5.85 an hour.
Effective July 24, 2008, the federal minimum wage increased to $6.55 an hour. Effective July 24, 2009, the federal minimum wage increased to $7.25 an hour.