What Are Payroll Taxes

Payroll taxes are taxes collected from an employee's paycheck by the employer and paid to the state or federal government as well as those matching funds the employer is required to pay.  These include:

Social Security (FICA)
Medicare (FICA)
Personal Income Tax (Federal/State)
 Unemployment Insurance (FUTA & SUTA)

Withholding payroll taxes is a complicated task.  The best way to approach this task is to use a payroll software or service.

Who Pays Payroll Taxes

Payroll taxes are paid by both the employee and employer.  In some cases only the employer is required to pay.

What Are the Payroll Tax Rates
Employee:  
Social Security 6.2% (now 4.2% until DEC 2012)
Medicare 1.45%
Personal Income Tax See rates by (Federal or State)
Unemployment Insurance Only AK, NJ & PA have personal rates
Employer:  
Social Security 6.2%
Medicare 1.45%
Unemployment Insurance 6.2% = federal
 states rates vary

Paying Payroll Taxes
Payroll taxes are normally paid at different intervals.  Learn what the state and federal guidelines are.
 

 

Withholding Payroll Taxes

Follow these guidelines to learn about withholding payroll taxes.

Resources

Federal Tax Withholding and Estimated Tax Guidelines

IRS Guidelines Governing Tax Deposits

FITW/FICA (Federal Income Tax Withholding/Federal Insurance Contributions Act)
 

FUTA (Federal Unemployment Insurance)