USA CAN SUDA TAX BE DEDUCTED & WHERE?

[margieq]

In Texas, is the State Unemployment Tax that is paid by businesses deductible? In specific a State Unemployment Tax (SUDA) assessed in 2016 was paid in 2017. Where in the 2017 Tax Report is this entered?

 

[Drmdcpa]

SUTA? State unemployment tax? Or SUDA? TX does not have income tax. Question needs to be clarified.

 

[margieq]

SUTA? State unemployment tax? Or SUDA? TX does not have income tax. Question needs to be clarified.

I believe it is SUI in the State of Texas. If your small business has employees working in Texas, you’ll need to pay Texas unemployment insurance (UI) tax. The UI tax funds unemployment compensation programs for eligible employees. In Texas, state UI tax is one of the primary taxes that employers must pay. I cannot find anything that tell me this is deductible.

SUTA? State unemployment tax? Or SUDA? TX does not have income tax. Question needs to be clarified.

 

[margieq]

I believe it is SUI in the State of Texas. If your small business has employees working in Texas, you’ll need to pay Texas unemployment insurance (UI) tax. The UI tax funds unemployment compensation programs for eligible employees. In Texas, state UI tax is one of the primary taxes that employers must pay. I cannot find anything that tell me this is deductible.

I cannot find anything that tell me this is deductible as a business expense, except that you can deduct it on a Schedule A with 2% limitation of adjusted gross income. I would like someone to clarify this for me!

 

[margieq]

I cannot find anything that tell me this is deductible as a business expense, except that you can deduct it on a Schedule A with 2% limitation of adjusted gross income. I would like someone to clarify this for me!

Ok..I just found something that may help with NOLO;
4. Insurance
You can deduct the premiums you pay for any insurance you buy for your business as a business operating expense. This includes:

• medical insurance for your employees
• fire, theft, and flood insurance for business property

• credit insurance that covers losses from business debt
• liability insurance
• professional malpractice insurance—for example, medical or legal malpractice insurance
• workers’ compensation insurance you are required by state law to provide it to your employees
• business interruption insurance
• life insurance covering a corporation’s officers and directors if you are not a direct beneficiary under the policy, and
• unemployment insurance contributions (either as insurance costs or business taxes, depending on how they are characterized by your state’s laws).

 

[margieq]

Ok..I just found something that may help with NOLO;
4. Insurance
You can deduct the premiums you pay for any insurance you buy for your business as a business operating expense. This includes:

• medical insurance for your employees
• fire, theft, and flood insurance for business property

• credit insurance that covers losses from business debt
• liability insurance
• professional malpractice insurance—for example, medical or legal malpractice insurance
• workers’ compensation insurance you are required by state law to provide it to your employees
• business interruption insurance
• life insurance covering a corporation’s officers and directors if you are not a direct beneficiary under the policy, and
• unemployment insurance contributions (either as insurance costs or business taxes, depending on how they are characterized by your state’s laws).

Any other help on this subject?

 

[Drmdcpa]

I understand FUTA/SUTA and just about every other payroll issue including some city specific rules. What I still do not understand is your question.

 

[margieq]

I understand FUTA/SUTA and just about every other payroll issue including some city specific rules. What I still do not understand is your question.

I understand FUTA/SUTA and just about every other payroll issue including some city specific rules. What I still do not understand is your question.

And I apologize. I was confused about the exact tax it was. As it turns out it is a UI or SUI Tax (and why they name it a tax is crazy) because it is insurance and TWC has very strick guidelines about contract laborers. Nevertheles, my question came about because of contract laborers being considered employees in 2016. TWC assessed 3400.00 for which the company paid. But it was not understood for what reason it was assessed, because the contractor who filed for unemployment was denied in the end but after the 3400.00 was paid. The 3400.00 was paid in early January 2017 and our problem is how to deduct that expense. After this research, I believe it would be under Insurance in the Schedule C for the company. Also not sure whether to amend 2016, which we do not want to do; or applied to 2017 since it was paid in 2017.

 

[margieq]

And I apologize. I was confused about the exact tax it was. As it turns out it is a UI or SUI Tax (and why they name it a tax is crazy) because it is insurance and TWC has very strick guidelines about contract laborers. Nevertheles, my question came about because of contract laborers being considered employees in 2016. TWC assessed 3400.00 for which the company paid. But it was not understood for what reason it was assessed, because the contractor who filed for unemployment was denied in the end but after the 3400.00 was paid. The 3400.00 was paid in early January 2017 and our problem is how to deduct that expense. After this research, I believe it would be under Insurance in the Schedule C for the company. Also not sure whether to amend 2016, which we do not want to do; or applied to 2017 since it was paid in 2017.