1. Copyright © Texas Education Agency, 2013. All rights reserved.1

2. 2 Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Call TEA Copyrights with any questions you have.

3. Performance Objective The student will be able to research and determine appropriate recordkeeping and tax issues. Specific Objective The student is expected to research and report on recordkeeping and tax issues when owning a business. Copyright © Texas Education Agency, 2013. All rights reserved.3

4. EIN Calendar Tax Year Fiscal Tax Year Cash Method Accrual Method Income Tax Federal Income Tax Withholding Social Security Tax Medicare Tax Federal Unemployment Tax (FUTA) Form I-9 Form W-4 Form W-2 Form 8300 Self-Employment Tax Excise Tax Electronic Federal Tax Payment System (EFTPS) Form 1099-MISC Penalty Startup Costs Depreciation Exemption Financial Statements Receipt Receipt Source Gross Receipts Purchases Expenses Petty Cash Fund Asset Liability Owner’s Equity General Journal Ledger Income Statement Balance Sheet Single-Entry System Double-Entry System Copyright © Texas Education Agency, 2013. All rights reserved.4

5. What do you think of when you hear or read the term ‘recordkeeping’? What do you think of when you hear or read the term ‘taxes’? From a personal or business-owner’s perspective, why is recordkeeping important? From a business-owner’s perspective, why is recording, reporting, and paying taxes important? Copyright © Texas Education Agency, 2013. All rights reserved.5

6. Luca Pacioli Do an internet search and record 3 facts about this person. Be ready to share with the class! Copyright © Texas Education Agency, 2013. All rights reserved.6

7. The IRS developed and provided document, Publication 583 ‘Starting a Business and Keeping Records’, addresses what new business owners need to know about federal taxes. The publication provides the question and the page where to find the answer. There are 10 questions. Example: What method can I use to account for my income and expenses? See Accounting Method. Copyright © Texas Education Agency, 2013. All rights reserved.7

8.  Using the provided document to locate the information, research and answer the ten questions.  You will create a 12-slide presentation with the following requirements:  Slide 1=Title Slide (Name of Assignment, Your Name(s), Course Name, Date, Teacher Name  Slides 2-11=Each Question and Answer  Slide 12=Reference Slide Copyright © Texas Education Agency, 2013. All rights reserved.8

9. Introduction of Assignment and Resources (blank presentation template and source document) Research and Record Format and Turn In Review and Evaluate Copyright © Texas Education Agency, 2013. All rights reserved.9

10. How did you do? Performance Objectives  Were you able to find appropriate and sufficient information about recordkeeping and tax issues?  Specific Objectives  Did you do some research to learn about recordkeeping and tax issues?  Were you able to determine what federal taxes apply to business owners?  Were you able to record and report on recordkeeping requirements and tax issues? Copyright © Texas Education Agency, 2013. All rights reserved.10

11.  Have students identify the following given they had $100,000 to start a new business:  Which form of business will be used? (Forms of Business)  When will your tax year start? (Tax Year)  What accounting method will you use ( Accounting Method )  What taxes will you have to pay based on your type of chosen business? ( Employment Taxes )  What business expenses will you deduct on your federal income tax return? ( Business Expenses)  What kind of records will you keep, and how long will you keep them? ( Recordkeeping )  Identify two local businesses and interview the owners using the same questions asked above. Create a Venn Diagram comparing and contrasting the two owners’ responses. Copyright © Texas Education Agency, 2013. All rights reserved.11