Welcome to payroll taxes Guide
Payroll Taxes Illinois 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 Basics of Payroll Taxes
from:As a business owner, you are responsible for certain taxes when it comes to your payroll. If you have employees, then this is something you need to know about. Then again, if you are self employed and are the only one to work for your company, then the taxes are handled differently. Otherwise, payroll taxes are something that you have to handle as a business. It is important to know about these ahead of time so that you don’t do anything wrong. After all, your company could get in big trouble with the IRS if you don’t handle the situation right.
There are two main ways that you handle the payroll taxes for your company. You pay some of the taxes yourself and then withhold the rest of the taxes straight from your employee’s payroll checks. So, in essence, both you and your employees are paying the payroll taxes. It’s a joint venture.
There are several different payroll taxes that you need to pay the government. The federal income tax should be fully taken out of your employee’s check. Then there is the FICA tax, which you split payment with your employee. FICA includes social security and Medicare taxes. You withhold half of the amount from their paycheck and then you pay the other half from your own company reserves. Also, depending on the state your company is based in, you may also need to pay state income taxes, which you would withhold from your employees.
In most cases, you can set up your payroll software to automatically withhold the correct payroll taxes from your employees. How much you take depends on how much your employees make. It also depends on other factors that you will learn when you first hire them and have them fill out a W-4 form. If you get this all set up with the software you use to cut your paychecks, then you won’t have to worry and the program can do the work for you. This is at least the case for the taxes you withhold from your employee. You still need to be mindful of the portion of the payroll taxes that is left up to your business to pay.
If you handle things correctly, you can still pay these taxes while also having your business run smoothly. Either way, you need to pay them, so it’s good to get it running well regardless. And remember, it could cost your company a lot of money, sometimes in the millions, if you calculate your payroll taxes wrong. Keep this in mind so that it doesn’t happen.
Payroll Taxes Illinois News
Why Americans Hate Paying Taxes
The debate over taxes has long been an issue in American politics, and now researchers have found some of the moral underpinnings that may explain why many hate paying taxes.
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...Cities fight proposal to freeze local share of state income tax
The city of Springfield could lose anywhere from $325,000 to $350,000 if Illinois lawmakers freeze local governments' share of state income tax revenue, Mayor Mike Houston said Wednesday.
Read more...2012 Economic Outlook - Report Highlights Atlas Energy LP and Permian Basin Royalty Trust
HONG KONG-- - Today, www.BrightonMarkets.com announced new reports highlighting Atlas Energy LP and Permian Basin Royalty Trust . Gain market insight with full analysis and research downloads available ...
Read more...2012 Economic Outlook - Report Highlights Crosstex Energy, L.P. and Natural Resource Partners LP
HONG KONG-- - Today, www.BrightonMarkets.com announced new reports highlighting Crosstex Energy, L.P. and Natural Resource Partners LP . Gain market insight with full analysis and research downloads available ...
Read more...