Common Taxes - 2011
The following is an outline of the common taxes a business and individual will encounter while operating in the United States, effective for 2011.
Federal Corporate Income Tax
| Over | But Not Over | Rate |
| $0 | $50,000 | 15% |
| $50,001 | $75,000 | 25% |
| $75,001 | $100,000 | 34% |
| $100,001 | $335,000 | 39% |
| $335,001 | $10,000,000 | 34% |
| $10,000,001 | $15,000,000 | 35% |
| $15,000,001 | $18,333,333 | 38% |
| $18,333,334 | ......... | 35% |
Federal Partnership Withholding Tax
35% Corporate foreign partners
35% Noncorporate foreign partners
Federal Payroll Taxes
Medicare tax
Rate - employee 1.45%
Rate - employer 1.45%
Social Security
FICA base $106,800
Maximum FICA tax - employee $4,486
Maximum FICA tax - employer $6,622
Unemployment tax
FUTA - base $7,000
FUTA - rate 1.7% (projected for Michigan for 2011)
State of Michigan
Michigan Business Tax
This is a business activities tax, consisting of two parts: modified gross receipts tax and net income tax. For budgeting purposes, you may figure .8% of modified gross receipts and 4.95% of business income. In addition, there is an additional surcharge of 21.99% of the calculated MBT liability before credits. of gross receipts.
Michigan Unemployment Tax
Approximately 2.7% of wages to $9,000.This percentage is revised annually and adjusted based on employment activity.
Workers' Compensation
Although not a tax, workers' compensation insurance is required, covering virtually all employees.
Cities and Municipalities
All of our counties and communities levy both a real and personal property tax.This is based on the value
of that property.For example:
If you were to purchase $100,000 of furniture and fixtures, and $400,000 of production equipment and were located in
Oakland County, Michigan, your personal property taxes would approximate $10,000.
Personal Income Taxes
For your employees living and working in the United States, they will have to file individual personal income tax returns, if they meet the requirements.
Federal Income Tax (Projected)
Single Individuals - taxable income
| Over | But Not Over | Rate |
| $0 | $8,500 | 10% |
| $8,501 | $34,500 | 15% |
| $34,501 | $83,600 | 25% |
| $83,601 | $174,400 | 28% |
| $174,401 | $379,150 | 33% |
| $379,151 | ........ | 35% |
Married Individuals Jointly and Surviving Spouses - taxable income
| Over | But Not Over | Rate |
| $0 | $17,000 | 10% |
| $17,001 | $69,000 | 15% |
| $69,001 | $139,350 | 25% |
| $139,351 | $212,300 | 28% |
| $212,301 | $379,150 | 33% |
| $379,151 | ........ | 35% |
State of Michigan Income Tax
Individual income tax 4.35%
