| An organization has a large number of employees | | | | pay roll taxes need to be calculated accurately and |
| who receive a salary for the work they do. Some | | | | each of the employees is required to fill out a form |
| employees may be paid a stable salary while others | | | | know Form W-4. The form helps to calculate payroll |
| are paid on the basis of productivity or the number of | | | | taxes. The form is used to calculate federal and state |
| hours worked. All organizations having employees are | | | | income tax to be deducted from the salaries of the |
| in charge of paying payroll taxes. Payroll taxes are all | | | | employees. Social security and Medicare deductions |
| the different forms of employment taxes paid by the | | | | are also considered and the amount to be paid is |
| organization and covers Federal and state income tax, | | | | calculated. Both the employer and the employee pay |
| social security and Medicare taxes and federal | | | | the calculated amount. |
| unemployment tax. Payroll taxes are deducted from | | | | The organization must also file Form 941 with the IRS. |
| the employees pay. Filing pay roll taxes becomes an | | | | In case of agricultural employees Form 943 needs to |
| important task in order to maintain proper record and | | | | be filed. The amounts mentioned in Form 941 should be |
| pay taxes regularly. | | | | in accordance with the amounts given every month |
| There are a number of forms and documents that | | | | using tax coupons or the EFTPS. At the end of the |
| need to be filed with the IRS. Payroll taxes involve | | | | tax year, Form 940, which is basically an information |
| large number of deductions and exemptions that are | | | | returns form, is required to be filed with the IRS. W-2 |
| to be taken into account during the filing process. First, | | | | forms are also required to be filed with the IRS. |