Yep. It's any tax refund setup to direct deposit from the IRS to your bank account. It doesn't matter if you have employer direct deposit. One other problem is that many people in the US are unbanked so they get prepaid debit cards or a check.
Yes, but your employer pays taxes too. It's supposed to add up to the same amount (although big businesses often manage to game the tax system in one way or another).
The IRS only gets your employer's contribution to taxable revenue. They don't have a way of knowing what you do with that income, which may be taxable. That's what you're supposed to do.
You file quarterly tax returns and pay the IRS. If you have a full-time job in the US your employer normally deducts and pays those taxes as part of payroll processing.
>Do you report and pay federal taxes and state taxes separately?
Yes. They are separate sets of forms that you pay (or get refunded) independently. They're basically unrelated exxcept to the degree that deductions/refunds may come into play.
The employer is making various deductions and payments, e.g. into unemployment, based on the state you live in. So your employer really does need to know your state of residence.
Yes, and besides, there's a flat income tax called 'payroll tax' that everyone pays both directly and indirectly through employment taxes paid by employers. Americans don't call that 'income tax' for some reason.
It is, yes. If you keep the same headcount and use at least 60% of it for payroll (not exactly clear how you prove that since money is fungible), it is essentially a stimulus check
> Your employer pays the tax on your behalf directly from your salary and updates the tax office as to how much you make. In turn, the tax office tells your employer how much tax to pay from your salary, without any input required from yourself.
Same thing happens in the US. When most people file their taxes here, they get money back because they already overpaid.
For example I spent a few thousand trying to launch a business this year, and that is all tax deductible. So I'll file that with my tax form that my employer sends me (with the salary info prefilled), and I'll end up getting some money back because my taxable income is lower than what the gov't expected.
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