Payroll

There is more involved in payroll than just sending a check to your employees and issue form 1099 and W-2 at the end of the year.

U.S. Payroll Tax Included Five Main Parts:

• Federal Tax Withholding

• Social Security Tax (SSA)

• Medicare Tax

• State Tax Withholding

• State Disability Insurance Tax

The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. Employer are also need to report Federal Unemployment Tax (FUTA) and State Unemployment Tax (SUTA).

Report Annually: Form 940, Form W-2 & Form W-3

Report Quarterly: Form 941, SUI & State Withholding

In general, you must deposit federal income tax withheld and both the employer and employee social security and Medicare taxes. There are two deposit schedules, monthly and semi-weekly. Under the monthly deposit schedule, deposit employment taxes on payments made during a month by the 15th day of the following month. Under the semiweekly deposit schedule, deposit employment taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit taxes for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday.