Paying Payroll Taxes

A key element to having a business, especially having employees, is paying payroll taxes. There are a handful of taxes for the company as well as the employee. Be prepared to allocate these dollars to payroll. And, no matter what, do not be late on tax filing or deposit deadlines as this carries a severe penalty.

There are a number of federal and state departments to account for when paying payroll taxes. There are allocations for Social Security, Medicare, Federal and State withholding and unemployment. Both the employee and employer pay equal amounts of Social Security and Medicare. The employer is responsible for Federal and State unemployment taxes.

Paying payroll taxes will require deposits to be made either semi-weekly or monthly and filing quarterly as well as annually. The amount and frequency of payroll tax deposits will depend on the number of employees and the amounts you are liable for. Federal payroll taxes have to be filed quarterly. Federal unemployment taxes are filed annually.

Take care in preparing, allotting for, filing, making deposits, and paying payroll taxes.

  

 

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