Federal (U.S.) Payroll Taxes
Simplified Tax And Wage Reporting System

This summarizes, in a simplified form, the Federal (U.S.) requirements for anyone employing another person or persons. For Florida employers, there are additional requirements related to state laws. Employers from other states should verify requirements for their state and local governments.

The "generic" requirements are listed below, however, there are variations of these for various classes of employers and additional requirements for some.  If you have questions or need assistance regarding your specific situation, please contact us.

Requirements Each Payday

• Withhold federal income tax based on each employee’s Form W-4.
• Withhold the employee’s share of social security and Medicare taxes.
• Include advance earned income credit in paycheck if employee requested it on Form W-5.
• Deposit
  • Withheld income tax, plus
  • Withheld and employer social security taxes, plus
  • Withheld and employer Medicare taxes, less
  • Any advance earned income credit.

  Note: The due date of the deposit depends on your deposit schedule (monthly or semiweekly). Deposit requirements are complex are larger employers may be required to deposit even more frequently and by electronic means.

• File a Form 8109, Federal Tax Deposit Coupon (Deposit slips for non-electronic deposits), and if applicable,
• File a Form 4070, Employee’s Daily Record of Tips (Report to the employer from employee).

Requirements Each Quarter (By April 30, July 31, October 31, and January 31)

• Deposit FUTA tax in an authorized financial institution if the undeposited amount is over $100.
• File a Form 941, Employer’s Quarterly Federal Tax Return (pay tax with return if not required to deposit). Other forms may be required for certain employers.

Year End Requirements (Various due dates beginning January 31)

• Remind employees to submit a new Form W-4 if they need to change their withholding.
• Ask for a new Form W-4 from employees claiming exemption from income tax withholding.
• Reconcile Forms 941 with Forms W-2 (Wage and Tax Statement) and W-3 (Transmittal of Wage and Tax Statements).
• Furnish each employee a Form W-2.
• File copy A of Forms W-2 and the transmittal Form W-3 with the Social Security Administration.
• Furnish each recipient a Form 1099 (e.g. Forms 1099-R and 1099-MISC.).
• File Forms 1099 and the transmittal Form 1096.
• File Form 940 or 940-EZ (Employer’s Annual Federal Unemployment Tax)
• File Form 945 (Annual Return of Withheld Federal Income Tax) for any nonpayroll income tax withholding.

Assisting you in your payroll taxes is included in our Setup payroll and payroll taxes packages.

See Also:

          Florida Unemployment Compensation Tax - Who Must Report Wages
          Household Employees - Employment Taxes
          New Hire Reporting In Florida
          Setup payroll and payroll taxes
          Small Business Services

© Copyright 1999 Raymond S. Kulzick. All rights reserved. 991026.