June 22, 2023Payroll taxes are added to the employees' wages, tips, and salaries. They're meant to finance social insurance programs like Social Security, Medicare, and unemployment insurance. Payroll taxes like Social Security taxes, for instance, gather around 24.8% of the combined federal, state, and local government revenue, and they're the second largest source of combined tax revenue in the United States. Today, our certified tax preparers will tell you all you need to know about payroll taxes, as described by the Internal Revenue Service (IRS).
Learning About a Company's Payroll Taxes?Every business has an employee system to pay. The company is in charge of issuing checks or deposits, and employees can use those as receipts. Taxes should be withheld from this payroll process, including the corresponding federal, state, and local taxes. Payroll taxes and income taxes represent the most common tax obligations for active companies in the U.S.
Who Pays Payroll Taxes?The responsibility of enforcing payroll taxes can be placed partially or fully on the employers. However, employees are the ones in charge of paying the total amount corresponding to payroll taxes. The market is driven by tax burden distribution, and this process benefits employers when it comes to tax payments.
Which Forms Are Required To File Payroll Taxes?On December 31, each employer has to deliver Form W-2 to their employees so that they can file their taxes. This form records the wages and taxes that employees generated over the taxable year, allowing taxpayers to file their received payments, tips, and other compensations (including non-cash payments). In turn, the employer needs to present Form W3 to report the combined employee income to the Social Security Administration, with all retention vouchers indicated in Form W2.
You Can Get the Best Assistance To File Your Payroll TaxesUnited Tax & Accounting Group has the best tax preparers for you and your company, so you can easily file your payroll taxes even as a non-English speaker. We also offer a reliable at-home tax preparation service to satisfy the demands of all Florida taxpayers. United Tax & Accounting Group puts the latest technology at your disposal to help you plan your payroll taxes, and our professional track record proves we're the best option to help all kinds of clients with their accounting and tax-related responsibilities.
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