Accounting in Delaware – American Accounting
In Delaware, it is also crucial for a company or a sole proprietor to keep their financial accounts efficient and compliant with the law. We help our clients with our well-prepared colleagues and many years of experience. You can contact us as an owner of a larger company.
Tax from claim back to labor law
Although the Delaware tax system is in many ways simpler than other countries, there are, of course, serious mails in the country’s bureaucracy. In addition, administration is conducted in a foreign language, which imposes additional burdens on employees and business owners. If you choose us, you will work with Hungarian accountants in Delaware who are fully proficient in applicable Delaware law.
And in what cases can you contact us? Our services include accounting for various Corporations, LLCs, Partnerships, and Non Profit Enterprises, Tax Claims, Account Management, Employee and Tax Rights, Registrations, Tax Returns and Business Development. Advising employers, employees on labor law, leave and sickness rights.
Accounting in Delaware:
In Delarare, businesses (whether sole proprietorships or companies) are required to report on their activities once a year. The reporting period is 12 months. The deadline for the report and payment of the tax is March 1.
- For companies, the first tax period begins (depending on the company type), the first January after the company is established, and the tax period ends on 31 December. Example Explanation: A Delaware company was formed on May 15, 2016, for example. End of tax year: December 31, 2016 The first full tax year therefore runs from May 15, 2016 to December 31, 2016. Accounting for a fractional period is counted separately, but there is no need to contract for that period if we contract for the first tax year. From now on, every subsequent accounting tax year will be adjusted to this date. So, for a company, the tax year runs from January 1 to December 31 of the following year.
- For foreign companies, there is a deadline for filing returns for the tax period up to June 30.
- For affiliate companies, there is a deadline for paying the annual tax by June 1st.
Depending on your activity and operation, it may be necessary to register withholding (becoming an employee).
Registered companies with Withholding have a monthly payroll reporting obligation.
Taxation in Delaware:
They are paid Income Tax on their income, which is equivalent to Delaware personal income tax. It varies according to the amount of personal income. There is no tax below $ 2,000 in revenue. Personal income varies between $ 2,000 and $ 60,000 based on income. 60,000 and above, the personal income tax is $ 2,943.50 plus 6.60%.
For example, for a personal income of $ 67,751 , the tax is:
60,000 – $ 29,433.50 tax.
Above 60,000, a $ 6.60% tax will be charged to $ 7,751.
6.60% of $ 7.751 is $ 511.56 .
The total personal income tax is thus $ 3,455.06.
Companies: Companies pay a corporation tax on their positive earnings. The rate is 8.7%.
Outgoing and incoming workers:
An incoming worker can only be called if he or she already has an SSN (Social Security Numkber). If the successful candidate does not have one, he / she cannot be notified.
In addition to the SSN, you must declare, in addition to the basic information, your marital status, the number of children you live with, whether you have a voluntary pension fund, life insurance, etc.
The recruited employee can receive a weekly, or fortnightly pay, which must be paid by the employer each time accompanied by Payslip.
Employees are required to pay Withholding tax every month, quarterly, or every eight months.
For young people between 14 and 17, the minimum hourly rate is $ 8.75.
For those 18 or over, the new minimum hourly rate is $ 8.75 for the first 90 days on a new job.
The minimum hourly rate will increase to $ 9.25 from October 1, 2019.
Working hours, employment, sick leave, holidays:
Full-time employees do not have a weekly working time according to the Dealware Labor Code. The employer can ask the employee for any number of hours to work. However, the state labor law statement states that any employee who works more than 40 hours a week is already considered overtime. For workers who work more than 40 hours, overtime must be paid one and a half times the normal wage for each hour under Delaware law.
If you work less than that, you are part-time (Part Time) The part-time work of a part-time worker is always subject to a contract, which may be 2.4 or 6 hours a day, but there may be zero hours time of contracted employment. In this case, you should always be available and you will only be paid if you are given a job… Only employees who work at least 7.5 hours a day are entitled to a minimum 30-minute break or lunch break.
Delaware law does not provide for minimum or maximum leave, sick leave, or any other entitlement to leave, whether paid or unpaid. Under the agreement between the company and the employee, the company must ensure that the employee is entitled to the annual leave. However, large companies have a duty to provide support for family or medical leave for workers who suffer from serious illness or injury. Employees who have worked at least 1,250 hours at their current employer are entitled to sick leave or sick leave. This corresponds to 31 full weeks full time.
Employees recruited in Delaware before January 1, 2012 contribute 3 percent of their pre-tax income to their retirement program. Employees recruited after January 1, 2012 contribute 5 percent of their pre-tax income to their retirement program.
Employees can retire at the age of 62 after completing 5 years of service.
Employees can retire at the age of 60 after completing at least 15 years of service.
Employees can retire at any time after completing at least 30 years of service.
Delaware provides health, dental, and vision insurance plans for members of the public employee retirement program.
Dividend tax rate:
No change in dividend tax rate in 2020/2021:
- $ 0- $ 38,600 – 0%
- $ 38,601 – $ 425,800 – 15%
- More than $ 425,800 – 20%
Joint Filing / Spouses:
- $ 0- $ 77,200 – 0%
- $ 77,201 – $ 479,000 – 15%
- More than $ 479,000 – 20%
The following registrations are required in Delaware:
- Register with the Delaware Revenue Department
- Registration for the Delaware Unemployment Department
- Register with the Delaware Workers Compensation Office
- Register with the Delaware Corporate Department to apply for a Federal Employer Identification Number (FEIN) through the Internal Revenue Service
- Withholding Agent Registration
- Operating license or registration.
In Delaware, the following statements must be submitted to the Authority:
- Franchise Tax
- Corporate Income Tax
- Gross Receipts Tax
- More taxation in the state of Delaware: https://symfalogic.com/taxation-in-the-state-of-delaware/
- Businesses with employees: https://symfalogic.com/businesses-with-employees/
- EIN Number: https://symfalogic.com/ein-number/
- FBAR: https://symfalogic.com/fbar/
Our Delaware accounting firm is waiting for you to be prepared, and here’s how to interpret the most commonly used terms in the country:
- Sole Proprietorship: A sole proprietor in Delaware who does not pay Franchise Tax because all of his business income is treated as personal income by the state and is thus taxed at personal income tax rates.
- Franchise Tax: A tax imposed by the State of Delaware for the right or privilege of owning a Delaware company. After the end of each tax year, each company must pay the tax by May 1st. LLC and Affiliate Companies Deadline for Franchise Tax Payment June 1
- Payroll: The equivalent of payroll. If your company wants to retain employees, Wittholding registration is required to officially become an employer.
- PAYSLIP : Payroll or payroll that a worker receives after each payment. In addition to the employee’s personal data, (name, address, and name of your bank) and employer, the payslip is the gross salary and deductions for the current month and the net salary payable, as well as the annual rolled-up data. This is essential for tax returns.
- Withholding : The withholding tax of employees who do business and pay employees or any remuneration to employees.
- EIN Number : The EIN number is the Employer Identification Number issued by the IRS to Delaware companies.
- Internal Revenue Service (IRS) : The country’s tax procurement agency that manages the Internal Revenue Code adopted by Congress.
Accounting Package Prices list here: https://symfalogic.com/accounting-price-list-of-american-companies/
- Apostille Certified Company Statement (For opening a foreign bank account. Certified Company Statement Two days before you arrive and is only valid for 30-60 days.)
- Registered Offices
- Retirement Account Management
Accounting Contract for American Companies
Why Choose Us?
Since 1999 we have been dealing with the accounting of the finances of individuals and companies.
We have been providing accounting services for Delaware businesses since 2014.
We are proud to have over 700 satisfied customers behind us who recommend us to newcomers to Delaware.
To make your accounting matters easier, we have created an online client portal where you can get a complete view of your current affairs and your documents after registration.
Depending on which accounting package you are subscribing to, you have several useful features:
– Knowledge Base
– Download Documents
– Upload Documents
– Use Webshop
– Manage Required Services
– Make Invoice Payment
– Monthly reports, reports
– Balance sheet and profit and loss account
– Monthly Profit / Loss Tracking
– Trial balance
– Weekly / Monthly Activity Report
– Asset inventory
– Global Project Report
– Condition survey
– Sales list
– Complete Customer Management
– Complete Customer Reporting
– Invoicing, Invoicing
– Supplier Reports
– Milestone management and management
– Track payroll data for your employees (who, when, how much, who has a holiday, who benefits, etc.)
– PayPal, Wordpay, Stripe, GoCardless, Global Payments, PayOnline
– Bank account linking
– Managing multiple currencies
– Email option
– HR *
– Payroll *
– Mobile App Access
Feel free to contact us if you are looking for a Delaware accountant
and contact us even if you are starting your career in Delaware now!
Phone: +1 (347) 571 – 5300
Email address: accountancy (at) symfalogic (dot) com
Skype: Symfalogic Corporation
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