The United States Internal Revenue Service (IRS) requires businesses engaging in commerce within the United States to pay taxes. If you didn’t already know, income taxes are not the only kind of tax that businesses are required to fork over. One of these taxes, which only applies to businesses with employees, is is payroll taxes. The following taxes are a few types of payroll taxes required to be submitted to the IRS by employers across the United States.
Federal Unemployment Tax
All employers must pay federal unemployment tax (FUTA) if they paid more wages than $1,500 in any single quarter’s time or if they worked employees for any amount of time in at least 20 weeks out of the year. Keep in mind that there are two other tests for household and farm workers that such employers should never overlook in fear of penalties from improper payroll tax filing in Marietta, GA. For the year of 2019, employers must pay 6% of workers’ first $7,000 earned during each year.
Social Security and Medicare Taxes
Social Security is a public program that pays qualified seniors’ monthly disbursements. Medicare is another social program that seniors, low-income, and disabled people are eligible for that pays for their healthcare expenses. To fund Social Security, employers must pay 6.2% of workers’ wages up to $132,900 of earnings in 2019. For Medicare, businesses fork over 1.45% on all their employees’ earnings. Workers paid more than $200,000 have 0.9% of their earnings saved by employers to pay additional Medicare tax – keep in mind that businesses do not fork over their own money for this type of tax.
Self-Employed Tax
If you own a business and work for it, you are self-employed. You are responsible for paying 15.3% of your earnings on the first $132,900 earned in terms of net income, whereas you’ll only pay 2.9% on everything earned over this dollar limit.
Since payroll tax filing in Marietta, GA, is a complex process to handle, you are likely better off hiring a professional to assist your business in paying payroll taxes.
