Payroll Preparation Tips - Find Out How Easy It Is!
Payroll taxes may seem complicated at first but can be easily explained.
Payroll taxes or payroll withholding comprises of three distinct sections. Employers need to:
- Calculate and Collect Payroll Taxes from Employees
- Pay the Collected Taxes to the Government
- Report What Was Paid and When to the Government
There are several different types of payroll taxes; these are split among federal and state lines. The most common payroll tax withholdings are:
- Federal Income Tax Withholding
- Federal Social Security Tax
- Federal Medicare Tax
- Federal Unemployment Tax
and:
- State Income Withholding Tax
- State Unemployment Tax
All payroll taxes are collected at the time you pay your employees.
The frequency at which one must pay payroll taxes is dependent on the total value of the taxes:
| Payroll Tax Deposit Schedule |
| Time |
Total Value of Payroll Taxes |
| Quarterly |
Payroll Taxes < $2,500 |
| Monthly |
$2,500 < Payoll Taxes < $10,000 |
| Semi-Weekly |
$10,000 < Payoll Taxes < $100,000 |
| Next-Business Day |
$100,000 < Payroll Taxes |
Learn More at Payroll Tax Wiki
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