As we complete the first quarter of 2020 there are a few requirements for payroll taxes. You must file all quarterly returns which include a Federal 941 and NYS45 (if you are a NY based company). Each time you process payroll, you are responsible for withholding and paying certain payroll taxes.
The employer is responsible for:
- Medicare at 1.45% (Uncapped)
- Social Security at 6.2% (Taxed on $132,900 in wages per employee)
- Federal Unemployment Insurance 6% (Taxed on $7,000 in wages per employee)
- State Unemployment Insurance Tax (This percentage varies by state)
- New York New Businesses automatically start at 3.2%
The employer is also responsible for withholding the following from the employee’s paycheck:
- Federal Taxes – Based on the employees W4 selections
- State Taxes - Based on the employees W4 selections
- Social Security – Taxed at 6.2% (Up to $132,900 in wages paid)
- Medicare – Taxed at 1.45% (No cap)
*Please note, this is a general outline, depending on where you operate more may be required*
These amounts are all reconciled on the quarterly and annual returns. If you are concerned that you may not be doing this correctly, or if you look at your rates and they seem higher than what is above, please reach out to our Paychex Representative, Elizabeth Drivas, here or at (646) 228-5529.