Tax help > Tips and Simple Guidelines On How To Calculate Payroll Taxes

Tips and Simple Guidelines On How To Calculate Payroll Taxes

by: Sara Jenkins

Managing a business small, medium or big requires you to pay your taxes, as well as your employees taxes. Managing a payroll can be an arduous and taxing job, no pun intended. There are laws that require us to pay taxes and everyone have to comply with that. But keeping up with the payroll can give many people sleepless nights. There are so many deductions needed to be done and they have to be exact to avoid confusion and complications later on. State and federal taxes are very strict and you don?t want the IRS pounding on your door because of some mistakes. Make sure that you do your calculations correctly to avoid a mess later on. Keep your payroll records and tax payments as your reference so you have proof of the deductions and payments you have done. Different states have different laws about records; check it out with your lawyer or accountant to make sure.

So just what are payroll taxes? Payroll taxes are the taxes that every business are required to deduct from the employees salary and pay to the state and the federal government, you are required to do this in behalf of your employees. Aside from withholding state and federal taxes, social security and medicare taxes are deducted also from the salary as required by law. The business on the other hand must match the amount paid for the social security and medicare.

In stating to calculate payroll taxes, each of your employee must complete an IRS form W-4. This form will be used to calculate payroll taxes. In the W-4, you can calculate the amount of the federal income tax, and because most states have income tax structures that are based on the federal taxation system, you may also use this form to calculate the state tax to be deducted from the salary of your employees. Also needed to calculate payroll taxes are the percentage currently used for the social security and medicare. Both the employer and employee split the amount needed to be paid. Whatever is deducted from the employee to pay the social security and medicare taxes, the employer must match that amount.

Aside from those, the law requires the employer to pay federal and state unemployment tax; this is part of the payroll taxes. Federal and State unemployment taxes (FUTA and SUTA) are based on the amount of unemployment claims that are filed by employees that you have released or fired. FUTA rates are the same for all state, while SUTA rates will differ from state to state. If your employee earns more than seven thousand dollars per annum, you do not have to pay those taxes anymore.

For some business owners, doing the payroll and to calculate payroll taxes just gets in the way of the day to day business he or she has to do. That?s why some proprietors get payroll services to do the dirty work for them. But this means more expenses for the company. While for some this is worth the money, small businesses with a small labor force should just do their own payroll. What they get is the luxury of concentrating more on their business without the need to worry about how to calculate payroll taxes. Just remember, always obey the laws so that you do not complicate matters which could end up to losing the business.

About The Author

Online entrepreneur Sara Jenkins, is dedicated to helping others and their needs to succeed in life by offering free payroll tips everyday. To learn more about her free payroll program, and to sign up for her FREE Payroll articles and FREE bonus how-to books and resources, visit www.PayrollXpert.com.

Unclaimed Tax Refunds: How To Claim Yours

Unclaimed Tax Refunds:
How To Claim Yours

by: Gray Rollins

When a taxpayer owes money on their taxes they need to pay the amount owed before the traditional April 15th deadline. If the amount owed on taxes is not paid before the deadline, then federal and state governments can impose a number of late fees and penalties. While there are penalties for failing to a pay taxes on time, there are no penalties assessed to individuals who are due a refund but fail to file their tax returns on time. http://www.taxhelpdirectory.com/taxfiling/

Tax season is a stressful time for many taxpayers. With hectic lives and busy schedules it is likely that an individual may not find the time to have their taxes prepared. As previously mentioned, there is the chance of late fees and other additional penalties for individuals who owe taxes; therefore, many individuals who are expected to owe...

Unclaimed Tax Refunds: How To Claim Yours

Tax help > Unclaimed Tax Refunds: How To Claim Yours

Mortgage Payments vs Rent Payments

Mortgage Payments vs Rent Payments

by: Max Hunter

There is an age-old debate on whether or not it makes more sense for people to rent or buy. Though it is hard to really understand why there is a debate at all. You will definitely hear arguments from both camps that appear logical but if you do a little digging you may find that some of the arguments are thin at best.

The simple fact of the matter is you are always better off making a mortgage payment over a rent payment if you can afford to do so. It is not uncommon for mortgage payments to actually be lower than many rent payments are. So the key is to understand an important, fundamental difference between making a rent payment and making a mortgage payment.

Rent payments are made on a monthly basis for the most part. That money gives you the right to live in the house or apartment for the specified period of time, typically one month. You receive no other tangible benefits from that...

Mortgage Payments vs Rent Payments

Tax help > Mortgage Payments vs Rent Payments

Why Choose Delaware as Your Corporate Home?

by: Jay Stockman

What state Incorporates more than a half-million business entities, including more than half of the Fortune 500 companies? New York? California? Illinois? No. No. No. That state is Delaware. With a population smaller than 88% of all states, this business-friendly state attracts more corporations than any of the major cities. Businesses choose Delaware simply because of their flexible corporate laws, highly respected Court of Chancery, a business-friendly State Government, and a customer service oriented Staff of the Delaware Division of Corporations.

Among the many business-friendly laws, Delaware does not require corporations to operate in the state, only to maintain a registered agent, who may be an individual resident, or an existing domestic corporation. Additionally, incorporations typically take 24 hours to process, however there are services that allow same day, and 2 hour filing....

Why Choose Delaware as Your Corporate Home?

Tax help > Why Choose Delaware as Your Corporate Home?

Cost Of Buying A New Car

Cost Of Buying A New Car

by: Joseph Kenny

One of life?s joys is buying a new car. The excitement of looking through those glossy brochures, choosing the brand, model, colour, plus the features is incredible. Ask most men and I?m sure they?ll tell you it?s one of the things they enjoy most in the world. And these days, with women reported to be involved in over 80% of all new car purchases, women are getting hooked fast on the pleasure of buying a new car.

However, if there is one thing that can detract from the enjoyment of buying a new car, it is the finances of the whole deal. This is not just speaking about the price of the new car, although this can be considerable. There is also the issue of all the hidden, and not so hidden extras that you have to pay for. For example, before you finalise the price of the car, you have to find out what features come as standard, and if you want to have any additional features, be they for safety, power,...

Cost Of Buying A New Car

Tax help > Cost Of Buying A New Car

An Overview On The Financial Capacity Of Social Security

An Overview On The Financial Capacity Of Social Security

by: Jinky C. Mesias

There have been so many reports confirming the distressing state of the finances of Social Security and so many members by now are wondering if they can really get the benefits that are due to them when their time to claim for such benefits arises.

In spite of the financial crisis that the Social Security is facing today, the Social Security Administration is confident that it can pay all benefits that are due to their members. They assured further that there would be no cuts on the benefits to be received by the current retirees but rather there would be a yearly increase on the benefits due to cope with inflation.

There are also so many reforms planned to be implemented in Social Security including those set forth by the President?s Commission that would further strengthen Social Security. The reforms are also set to ensure that scheduled benefits, including...

An Overview On The Financial Capacity Of Social Security

Tax help > An Overview On The Financial Capacity Of Social Security

Know How To Take Your Lumps

Know How To Take Your Lumps

by: Ken Morris

If you are about to retire or change jobs, or if your employer is terminating the company retirement plan, you may be eligible to receive a "lump sum distribution" as defined in the Internal Revenue Code.
Such a distribution may be substantial and may represent the cornerstone of your retirement security.
So it is important to consider your options carefully before making a decision regarding distributions.

Basically, you are faced with two main options.
Should you take a direct distribution and pay your taxes now?
Or should you roll your distribution over into a traditional Individual Retirement Account (IRA)?

If you decide not to roll the distribution over into a traditional IRA, you must pay tax on the distribution in the year you receive it. You will, of course, be able to invest the remainder as you please.
The main benefit of paying taxes on your...

Know How To Take Your Lumps

Tax help > Know How To Take Your Lumps

Goal Centric Software Design

by: Santanu Ghosh

Before we go into details of goal centric design let us look at one of the most important part of modern software design named abstraction. In brief abstraction is nothing but selection through examination of certain aspects of the whole requirement of the software project. Abstraction determines aspects of the requirement and isolate and rank the aspects on the basis of their importance. Thus through abstraction...

payroll Tax help Tips and Simple Guidelines On How To Calculate Payroll Taxes Goal Centric Software Design

Tax help > Goal Centric Software Design

Goal Getting - An Alternate Way To Approach Your Direct Sales Business

by: Annette Yen

In my many years of Party Plan direct selling I have seen it time and time again... women come home from their annual convention fired up, determined that by next year they'll be able to walk the stage in the top 10, earn the cruise and have enough income to purchase their dream home on the ocean. It is great to come home motivated and excited about your company. Having big...

Tax help Goal Getting - An Alternate Way To Approach Your Direct Sales Business

Tax help > Goal Getting - An Alternate Way To Approach Your Direct Sales Business

Cosmetic Chin Surgery - The Final Facial Touch

by: Jeff Lakie

When either cosmetic or plastic surgery are mentioned to us, our thoughts run immediately to breast implants or liposuction, but there are many other procedures available that although they might not receive the same attention of their more obvious counterparts can have a huge impact upon both the appearance and the self confidence of a patient. One of these unsung heroes is cosmetic chin surgery,...

cosmetic dentistry

Tax help > Cosmetic Chin Surgery - The Final Facial Touch

4 Fun And Easy To Make Homemade Christmas Decorations

by: Rosie Fletcher

Homemade Christmas decorations are some of the most unique. They are also a lot of fun because you can enjoy them with your family. Below are 4 fun and easy to make homemade Christmas decorations:

Popcorn Stringing

If you like strung popcorn, it?s really simple to make. Start with a big bowl of popcorn (unbuttered, of course) and string it piece by piece using a standard sewing...

Tax help

Tax help > 4 Fun And Easy To Make Homemade Christmas Decorations

Flax Seeds, Seeds, and Nuts For Constipation Relief

by: Rudy Silva

Here are a variety of home remedies for constipation using flax seeds with other seeds and nuts. They provide the fiber and oils that you need to relieve constipation. Drinking plenty of water with these home remedies will make them more effective.

Mix equal parts of flax seeds, almonds, sunflower seeds and sesame seeds. It is o.k. to mix only three of these seeds, if that is all you...

Tax help Tips and Simple Guidelines On How To Calculate Payroll Taxes seeds Flax Seeds, Seeds, and Nuts For Constipation Relief

Tax help > Flax Seeds, Seeds, and Nuts For Constipation Relief