Federal Income Tax Withholding: Calculate and withhold federal income tax based on employee’s W-4 form and IRS tax tables.
Social Security and Medicare Taxes (FICA): Withhold Social Security tax (up to the annual wage base) and Medicare tax from employee wages.
Federal Unemployment Tax (FUTA): Pay FUTA tax on employer payroll (subject to state specific exemptions and credits).
State Requirements
State Income Tax Withholding: Calculate and withhold state income tax based on the employee’s W-4 form and state-specific tax tables.
State Unemployment Tax (SUTA): Pay SUTA tax on employer payroll, subject to state-specific rates and rules.
Local Taxes: Some states have local income taxes or other local taxes that may need to be withheld or paid.
Other Considerations
Employee Benefits: Accrue and pay for employee benefits such as health insurance, retirement plans, and workers’ compensation insurance.
Wage and Hour Laws: Ensure compliance with federal and state wage and hour laws, including minimum wage, overtime pay, and meal and rest break requirements.
Recordkeeping: Maintain accurate payroll records, including time and attendance records, wage and tax statements, and employee information.
Reporting: File required federal and state payroll tax returns and reports, including Forms W-2, W-3, 940, 941, and state-specific forms.
AuraFinacc Solutions is an accounting firm offering customized financial solutions to U.S. businesses. Established in 2024, we focus on exceptional client service.
