Welcome to payroll taxes Guide
How To Do Payroll Taxes Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
The Importance of Paying Employer Payroll Taxes
from:Are you planning on starting your own business? If so, it is good to find things out about the business beforehand so that you don’t make any costly rookie mistakes. After all, some people who start fresh often lose their businesses if they don’t handle things properly. Some even end up paying hefty fines and going to jail over their mistakes. To make sure this doesn’t happen to you, you should learn as much as possible.
One of the things that you need to know very well is the taxes that you’ll need to pay. For example, most new business owners don’t realize that they will have to pay some of the payroll taxes. They assume that it all just gets taken out of their employee’s paychecks. Well, that’s wrong. In reality, your company is responsible for paying half of the FICA taxes. If you don’t you could be in quite a bit of trouble. These are the employer payroll taxes that you must pay in order to be a legally sound company.
The FICA taxes are very specific. It is the employer payroll taxes for both social security and Medicare. When it comes to social security, you are allowed to withhold 6.2% of your employees’ earning. That portion will go toward paying that tax. Then it is up to you to pay an additional 6.2%. Essentially, that means that both you and the employee are taking equal responsibility in paying that tax. Then, with Medicare, you each pay 1.45% separately. In other words, your portion of the FICA employer payroll taxes will equal 7.65%. This is what your company is responsible for when it comes to all of your employees. You need to do this for each of them.
How much of the employer payroll taxes have a lot to do with how much you pay your employees and how many employees you have to begin with. The bigger your company is, the more you will pay in these taxes. This is necessary and a good thing for your company.
To make sure that you are paying the right money in employer payroll taxes and that you are taking the right amount of taxes out of your employees’ checks, you should use a combination of software programs and accountants. This is especially the case when you have a large company that has many employees. The more employees you have, the more likely you are to make a mistake with the calculations in regards to taxes. Since this can cause a lot of problems, it’s better to get them right the first time.
How To Do Payroll Taxes News
Senate fails to agree on student loan rate freeze
The U.S. Senate held two votes Thursday on measures to ensure that student loan rates for millions of college students do not double in July — and at the conclusion of the legislative action, the issue remained exactly where it began: stuck. Read full article >>
Read more...Even summer jobs face tax obligations
Q. My son has a job for the summer — a real job with a real paycheck. So will he owe taxes on this money, and will he have to file a tax return? A. Welcome to real life — where money earned is shared with the government. It may be a rude awakening for your son. The first thing he will be asked to do is fill out IRS form W-4, “Employee’s Withholding Allowance Certificate.” That’s how the employer ...
Read more...Summer jobs introduce kids to Uncle Sam, taxes
“You didn’t tell me how MUCH they would take out in taxes.” Expect to hear those words from exasperated teenagers or college students over the next few weeks as they set aside their calculators and toss their textbooks to start summer jobs.
Read more...Sherwood leaders mull employee pay raises
Now that there are only four months left in 2011, Sherwood city officials are getting a better idea of the coffer cash flow when trying to figure out how much tax money is left after monthly bills are paid.
Read more...Snyder, Legislative leaders agree to income tax cut, more education funding
Lansing — Michiganians can expect individual tax relief this year as part of an agreement on the state budget hammered out late Wednesday that also includes more money for education, roads and film tax credits.
Read more...