CAN you respond to this classmate with at last 50 words

Malinda Wright,

Business income taxes are a cash flow expense based on earnings. It is a government levy on the businesss income or capital, or net profit. For instance, an S corporation will file Form 1120-S for the business return and will pay a flat corporate tax rate. If the business is a pass-through entity, the income is passed through onto their personal income tax filing. An S prop owner will report their business income and expenses on the Schedule C which will flow through to their Form 1040. The tax rate is subject to personal tax rates and will vary depending on income. Personal income taxes are imposed by the government and vary depending on individual wages and salaries.

Additionally, businesses are subject to other taxes such as employment taxes, sales tax, and in some cases, self-employment taxes. Employment taxes are employer/employee withholdings which must be reported and paid usually on a quarterly basis. If a business is required to collect tax on sales, they are required to remit the collected tax to the state. Finally, if one is self-employed, this person is required to pay their self-employment taxes which cover social security and Medicare.