Tax burden
Tax burden in a Budget When preparing a budget for a construction project, it is important to consider various taxes that may be applicable. Specific taxes will depend on the location of the project and the nature of the work. Below are some common taxes that could be included in a construction estimate: 1. Sales Tax: If the jurisdiction imposes sales tax on construction materials and supplies, it must be included in the estimate. Contractors may need to calculate the applicable sales tax rate and include it in the total cost. 2. Use Tax: In some cases, contractors may be required to pay use tax on materials purchased outside the jurisdiction where the construction project is taking place. Use tax must be considered when estimating the total cost. 3. Employment taxes: Payroll taxes, including Social Security, Medicare, and income taxes withheld from employees' salaries, must be factored into the estimate. This also includes the employer portion of payroll taxes. 4. Excise taxes: Ce...