Payroll & Sales Tax Preparation
Federal Requirements
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.
