Guam Business Resource Guide

Treasurer of Guam on a quarterly basis no
later than the 10 th day of the month following
the end of the quarter (i.e. April 10,
July 10, October 10, and January 10).
5.3.5 All employers must maintain on file Form W-
4, Employee’s Withholding Allowance Certificate
for each employee. Employers are
urged to advise employees to update their
Form W-4, especially if they owed taxes or
received a large tax refund in the previous
year. To help them determine the appropriate
withholding amount to update Form W-
4, employees can use the Withholding Calculator
at www.irs.gov/individuals.
5.4. SOCIAL SECURITY TAX OR “FICA TAXES”
5.4.1 Social Security payroll taxes are collected
under authority of the Federal Insurance
Contributions Act (FICA). The payroll taxes
are sometimes called "FICA taxes".
5.4.2 The social security tax is withheld by the
employer and is paid to the federal government;
5.4.3 It is levied on all employee wages, defined
to include all remuneration whether in cash
or other forms, such as salaries, vacation
allowances, bonuses, and commissions.
5.4.4 It is paid by both the employee and employer.
The employee's income is taxed
7.65% for social security purposes, and his
employer also pays 7.65% for, for a total of
15.3% (up to $90,000 in employee income,
when it decreases to 1.45% for each of employee
and employer).
5.4.5 For individuals who are self employed, they
are deemed to be both the employee and
employer. The social security tax is therefore
a total of 15.3% (up to $90,000 in individual
income, when it decreases to a total
of 2.9%).
5.4.6 Note also that social security taxes include
1.45% from each of employee and employer
for medicare taxes.
5.4.7 To calculate how much to withhold from
each wage payment, use the employee's W-
4 form and the methods described in Publication
15 - Employer's Tax Guide and Publication
15A - Employer's Supplemental Tax
Guide.
5.4.8 Publication 15 and Publication 15A, and
other federal tax information, are available
at www.irs.org.
5.4.9 Report federal income taxes and social security
taxes on Form 941, Employer's Quarterly
Federal Tax Return and/or Form 943,
Employer's Quarterly Federal Tax Return for
Agricultural Employees.
5.5 CORPORATIONS TAX
5.5.1 Guam corporations are subject to income
tax on their income from all sources. Other
corporations doing business on Guam incur
income tax liabilities to Guam on all Guam
source income. Corporations not engaged in
business on Guam are liable to a 30% tax on
certain types of income from Guam sources.
The tax rates for corporations doing business
on Guam ranges from 15% to 34%, and
can be found in Section 11 of the Guam Territorial
Income Tax Law.
5.5.2 Guam corporations are required to file an
income tax return for the calendar year on
or before March 15 of the following year.
Corporations operating on a different fiscal
year must file an income tax return on or
before the 15 th day of the third month following
the end of the fiscal year.
5.5.3 Rebates are available to some taxpayer
groups. Please refer to Section 7 below, or
seek additional information from the Director
of Revenue and Taxation.
5.6 REAL PROPERTY TAX
5.6.1 The Assessment Value (or base) for the calculation
of Real Property Tax is 35% of the
appraised value of land and buildings.
5.6.2 Land - Real Property Tax is calculated at
0.25% of the Assessment Value of land.
22