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Payroll Taxes Withheld Article
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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.
Payroll Taxes Withheld News
Federal spending - trillions in vogue - Heber Springs Sun-Times
Federal spending - trillions in vogue Heber Springs Sun-Times, AR - On January 1st payroll checks could be increased by decreasing the amount withheld of income taxes and payroll taxes. This would create spendable income for ... |
Middle-class tax cut may come soon - CNNMoney.com
Middle-class tax cut may come soon CNNMoney.com - The credit would essentially work as a payroll tax credit equal to $500 for individuals and $1000 for couples. The credit would have an income threshold. ... |
Am I liable for unpaid payroll taxes? - MiamiHerald.com
Am I liable for unpaid payroll taxes? MiamiHerald.com, FL - ... the withheld taxes. The trust fund recovery penalty, equal to 100percent of the unpaid payroll taxes, is a collection device to protect the government. ... |
Stimulus package could come as increase in workers' take-home pay - Examiner.com
Stimulus package could come as increase in workers' take-home pay Examiner.com - One work-based option is that employers and the IRS would work together to change the amount of tax that is withheld from workers' payroll checks, ... |
Illegal workers manage to skirt Arizona employer-sanctions law - Tucson Citizen
Illegal workers manage to skirt Arizona employer-sanctions law Tucson Citizen, AZ - From that, Gabino said his employer withheld about $123 in state and federal income taxes. Gabino said that in December managers at the plant started ... |