Employment Taxes - What are they?

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If you have employees, you are responsible for paying taxes on a variety of federal, state and local governments. You must also withhold certain taxes on the wages of their employees. So what are the fees for the job?

payroll taxes are as follows.

1. Federal withholding

2. Social Security and Medicare

3. Federal unemployment taxes (FUTA).

Federal Tax / Social Security and Medicare

In general, you should retainThe income tax on wages paid to an employee. Form W-4 will determine the exact amount, although most payroll services or your accountant do it for you.

Social Security and Medicare taxes pay for services provided to employees and their families in the opinion of the Court of Insurance Act (FICA). Social Security taxes to pay benefits to retirees, survivors and disability measures for the distribution of FICA. Medicare payroll tax for the use of medical careThe provisions of FICA. As an employer must withhold a portion of those taxes and workers 'participation' in the amount of the deduction.

In general, you should file these taxes by check or cash in an authorized financial institution, usually in your bank. Consult your tax advisor to ensure that they are not obliged to use the electronic filing of federal taxes (TVET). Any form of payment, that is, please report it on Form 941, employer's quarterly federal tax onBack

Federal unemployment taxes (FUTA)

FUTA program is a combination of federal and state levels that provides unemployment benefits for the unemployed. As an entrepreneur, will be solely responsible for paying this tax, that is, nothing is withheld from the wages of their employees. FUTA is calculated using the Form 940, but are asked to choose a way of stamp duty for professional use.

employment taxes can be frustrating for a small business. They areunfortunately a necessary evil as your business grows.