Payroll Tax Filing Basics. Audio for this session will play through your computer

Transcription

1 Payroll Tax Filing Basics Audio for this session will play through your computer

2 Objective Upon completion of this course, you will have a better understanding of the different types of federal and state payroll taxes. You will also become familiar with the federal filing forms used to reconcile federal payroll taxes. Finally, we will provide you with tips for identifying the difference between the two major state agencies. 2

3 Federal Payroll Taxes Federal Payroll Taxes 3

4 Federal Payroll Taxes Federal Income Tax (FIT) Employee paid tax Determined by four factors: Taxable Wages Martial Status Exemptions Pay Frequency No taxable limit 4

5 Federal Payroll Taxes Social Security (SS) Employee and employer paid Determined by a percentage: 6.2% of employee s taxable wages Taxable limit 5

6 Social Security Taxable Wage Limit Visit COMPLIANCE CONNECTION City Tax Locator FAQ Glossary Federal Taxes Forms Download NEW - Int l ACH Transaction (IAT) Key Dates New Hire Reporting Payroll Resources State Taxes Tax and Regulatory Newsletter Tax Incentives Unemployment Ins. Vital Connections Federal Taxes Federal Tax Calculations W-2 Taxable Wages Federal Estimated Interest Rates Social Security Tax Schedule Federal Reporting Forms Other Federal Changes Electronic Federal Tax Payment System 6

7 Federal Payroll Taxes Medicare (MEDI) Employee and employer paid Determined by a percentage: 1.45% of employee s taxable wages No taxable limit Federal Insurance Contribution Act (FICA) 7

8 Federal Payroll Taxes Federal Unemployment Tax Act (FUTA) Employer paid $7000 taxable limit Determined by a percentage: 6.2% of employee s taxable wages Possible Tentative Credit up to 5.4% 8

9 Federal Payroll Tax Filing Forms Form 941 Regular employees wages Filed quarterly Taxes reconciled FIT SS MEDI 9

10 Federal Filing Forms Form 943 Agricultural employee wages Filed annually Taxes reconciled FIT SS MEDI 10

11 Federal Filing Forms Form 944 Regular employees wages Tax liabilities of $1000 or less Filed annually Taxes reconciled FIT SS MEDI 11

12 Federal Filing Forms Form 945 Non-Payroll related taxes Pensions, annuities, gambling, etc. Filed annually Taxes reconciled FIT 12

13 Federal Filing Forms Form 940 Federal unemployment taxes Filed annually Taxes reconciled FUTA 13

14 Federal Filing Forms Form W-2 Wage and tax statement Filed annually Form W-3 Transmittal of income and tax Summary of total wages and taxes Filed annually 14

15 State Payroll Taxes 15

16 State Payroll Taxes State Income Tax (SIT) Employee paid tax Determined by four factors: Taxable Wages Martial Status Exemptions Pay Frequency No taxable limit 16

17 State Payroll Taxes State Income Tax (SIT) Nine states do not have SIT: Alaska Florida Nevada New Hampshire South Dakota Tennessee Texas Washington Wyoming 17

18 State Payroll Taxes State Unemployment Insurance (SUI) Primarily employer paid tax Employee also pays in some states Determined by a percentage: Unemployment Experience Rate Rate varies by employer Taxable Limit Limit varies by state Filed quarterly 18

19 State Payroll Taxes State Disability Insurance (SDI) Employee paid in: CA, HI, NJ, NY, PR, RI Employer paid in: NJ, PR Determined by a percentage: Rate varies by state Taxable Limit Limit varies by state 19

20 State Payroll Taxes State Disability Insurance (SDI) HI and NY SDI Not considered a payroll tax Handled through a third party ADP does not file HI or NY SDI 20

21 State Agency Names State Income Tax (SIT) Words associated with money Department of Revenue State Tax Commission State Unemployment Insurance (SUI) Words associated with labor or employees Department of Job Services Department of Labor 21

22 Payroll Tax Filing Basics Thank You! 22