Which payroll taxes are the employer’s responsibility?

Employers are generally responsible for paying a number of payroll taxes on behalf of their employees. These taxes include:

• Federal income tax: Employers are required to withhold federal income tax from their employees’ pay and pay the taxes to the Internal Revenue Service (IRS). The amount of federal income tax withheld is based on the employee’s tax filing status and the number of exemptions claimed on the employee’s tax withholding form (Form W-4).
• Social Security tax: Employers are required to pay Social Security tax on behalf of their employees. The tax rate for Social Security tax is currently 6.2% of the employee’s earnings, and the tax is paid to the Social Security Administration (SSA).
• Medicare tax: Employers are required to pay Medicare tax on behalf of their employees. The tax rate for Medicare tax is currently 1.45% of the employee’s earnings, and the tax is paid to the SSA.
• State income tax: Some states also require employers to withhold state income tax from their employees’ pay and pay the taxes to the state tax agency. The amount of state income tax withheld is typically based on the employee’s tax filing status and the number of exemptions claimed on the employee’s tax withholding form.

In addition to these taxes, employers may also be responsible for paying other payroll taxes, such as unemployment insurance tax and workers’ compensation insurance.

Overall, employers are responsible for paying a variety of payroll taxes on behalf of their employees, including federal and state income taxes, Social Security tax, and Medicare tax. Prominent Financial Consultants offers a range of services to help our clients succeed, and we would love the opportunity to discuss how we can help you. If you would like to schedule an appointment with us, please schedule a free 15 Minute Financial Clarity Call so that we can learn more about your needs and goals.