| Type of Tax Form 941 Form 940 Federal Tax Social | | | | may also be paid via a tax coupon that is taken to |
| Security Tax FUTA Tax Medicare Tax FICA Matching | | | | your bank and presented with the monies to cover the |
| Funds Tax Deposits EFTPS Filing Requirements IRS | | | | payroll taxes due. |
| Employees I-9 Verification of Work Status W-4 | | | | Every quarter, a Form 941 (or 943 for Agricultural |
| Record Keeping Starting a Business Benefits EIN | | | | employees) must be filed with the IRS. The amounts |
| Withholding Rates Where to File When to File How to | | | | reported on the 941 should reconcile to the amounts |
| Report Yearly W-2 1099 Contractor Statutory | | | | turned in each month via the tax coupon or the |
| Employee Payroll Taxes If you have employees, you | | | | EFTPS. At the end of the tax year, a Form 940 or |
| are responsible for payroll taxes. This is a term that | | | | information return must also be filed. If you are a small |
| lumps all the different forms of employment taxes into | | | | business with employees, or you plan to begin |
| one category known as payroll tax. In reality, | | | | operating a business with employees, you need to |
| payroll taxes encompass Federal and state income | | | | understand your tax responsibilities as an employer. |
| tax withholding, social security and Medicare taxes | | | | The IRS provides links to all the relevant Forms and |
| (also known as FICA), Federal unemployment tax | | | | Publications via their internet site at . Here you will find |
| (FUTA), as well as any state and local unemployment | | | | definitions and terms associated with employees from |
| taxes assessed. | | | | the onset of hiring, to termination. W-4’s, |
| Payroll taxes are deducted each pay period from an | | | | W-2’s, I-9’s, all the employment taxes |
| employees gross pay. The remaining money | | | | you will be responsible for reporting, all the rates |
| distributed to the employee is what is known as net | | | | associated with those taxes. |
| pay. Along with any taxes deducted from an | | | | The IRS also provides you with information concerning |
| employee’s wages, there is a social security | | | | recordkeeping, employment eligibility verification, benefit |
| and Medicare liability incurred by the employer. You | | | | and retirement plans, and even the definition to be |
| must match the social security and Medicare amounts | | | | used in order to determine if someone is an employee. |
| withheld on each employee. | | | | There is a tremendous benefit to be had by investing |
| This is the employer paid contribution. Until recently, | | | | the time and resources necessary to understand and |
| most employers reported and paid payroll taxes | | | | comply with all the federal, state, and local regulations |
| quarterly. With the advent of the EFTPS, or Electronic | | | | concerned with employees and payroll taxes. |
| Federal Tax Deposit System, taxes are now paid on | | | | However, you should frequently seek the advice of a |
| a monthly basis by all employers. The payroll taxes | | | | qualified tax professional, your accountant. |