Roseville Employment Tax Accountant
Our Roseville employment tax accountants help employers file their taxes and report wages, tips, and other forms of employee compensation. Call today.
Employers are required to pay certain taxes on the income they make. This includes federal income tax, Social Security and Medicare taxes, the Federal Unemployment Tax (FUTA), and, if applicable, self-employment taxes. The IRS, however, places certain requirements on how often these taxes are paid, the services that they can be paid through, and what forms they must be reported on. It can be overwhelming for employers to take in all of this information, but it doesn’t have to be with the help of a Roseville employment tax accountant. Employers can use the help of a certified accountant to pay all of their employment taxes to the IRS so that they can focus on more pressing business matters. Get in touch with an accountant from Cook CPA Group soon to learn more about how you can use their services to pay your employment taxes with promptness and accuracy.
Types of Employment TaxesThere are a few different types of federal taxes that employers must pay. Any Roseville employer who would like to learn more about their taxes can consult Publication 15, the Employer’s Tax Guide. The taxes that must be paid to the IRS by employers are:
- Federal income tax – This tax is generally withheld from employees’ wages and is paid to the IRS by employers. The way that an employer deposits their withholdings depends on the type of business they have and the amount that they would like to withhold, as determined by the information that the employee entered on their W-4 form. Employers should note that the amount for one withholding allowance in 2019 is $4,200.
- Social Security and Medicare taxes – Employers must withhold a part of employees’ wages for Social Security and Medicare and must pay a matching amount themselves. Employers can figure out how much tax to withhold by using Form W-4. The employee tax rate for Social Security in 2016 is 6.2%; the wage base limit for Social Security is $118,500. The tax for Medicare is 1.45%, with no such limit. Social Security and Medicare taxes are also known as FICA taxes, since they are mandated by the Federal Insurance Contributions Act.
- Additional Medicare taxes – Employers are responsible for withholding the Additional Medicare Tax from their employees’ wages. In 2019, the Additional Medicare Tax rate is 0.9% on not only an employee’s wages but an employee’s compensation that exceeds a threshold determined by their filing status. Employers must begin withholding the Additional Medicare Tax during the first pay period that exceeds the threshold. Employers do not match employee withholdings for the Additional Medicare Tax.
- Federal Unemployment Tax (FUTA) – Employers alone pay FUTA; it is not withheld from employees’ paychecks. Deposits made for this tax are required for every quarter in which the amount of the tax due exceeds $500. FUTA payments must be deposited by the end of the month following the end of the quarter in which the amount due exceeds $500.
- Self-employment tax – This tax is paid only by individuals who work for themselves, either as small business owners or freelancers. It is very similar in nature to the Social Security and Medicare taxes that are paid by employers.