Hiring Workers
- Employer's Obligations When Hiring Workers
- Classifying Workers
- State New Hire Registry
- Advance Earned Income Credit
- Worker's Compensation Insurance
- Federal Employment Taxes
- Employment Eligibility Verification
More Tax Topics
- Business Structures
- Start-up Costs
- Depreciation
- Car Expenses
- Home Office Deduction
- Travel Expenses
- Hiring Workers
- Meals and Entertainment
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Federal Employment Taxes
Federal Employment Taxes
An employer must withhold the following federal taxes from each employee's gross pay:
- Federal income taxes (unless the employee chose exempt status on Form W-4).
- Social security taxes:
- Due to the temporary reduction in the employee's share of the social security tax, for 2011 the employee's rate is 4.2% x gross wages
- The employer's social security rate remains 6.2%
- The maximum social security wage base for 2011 is $106,800.
- Medicare taxes (1.45% x gross wages).
- There is no wage ceiling for Medicare taxes. Employee's are taxed on every dollar.
- There was no reduction in the Medicare tax rate in 2011.
Federal income tax exemption:
An employee may choose to be exempt from having federal income taxes withheld. The employee indicates this exemption on Form W-4. This does NOT apply to social security and Medicare taxes.
Employment Tax Forms
Quarterly:
- Form 941, Employer's Quarterly Federal Tax Return
Annually:
- Form 940, Employer's Annual Federal Unemployment (FUTA) Tax
- Form 944, Employer's Annual Federal Tax Return
- Form W-2, Wage and Tax Statement
- Form W-3, Transmittal of Income and Tax Statement
Next:
Federal Employment Taxes: Employment Tax Forms Used When Hiring Employees; Form W-5, Earned Income Credit Advance Payment Certificate; Name and Social Security Number
Related Links
- Employee or Independent Contractor?
- Types of Workers
- Employee Defined
- What Are Common Law Employees?
- Not Sure How to Classify Someone?
- What Are Statutory Employees?
- Withholding Taxes for Statutory Employees
- Statutory Employees Have Two Options for Reporting Income
- What Are Statutory Nonemployees?
- Withholding Taxes
- Schedule C and Self-Employment Taxes for Statutory Nonemployees
- Employer Reporting Requirement for New Hires
- What is the Earned Income Credit?
- Advance Earned Income Credit Payments
- Form W-5
- Maximum Advance Earned Income Credit Payment
- Withholding Taxes
- Advance Earned Income Credit Payments Treated as Tax Deposits
- How Advance Earned Income Credit Payments are Provided to Employees
- Reporting Advance EIC payments
- Answering Employee Questions About Advance Earned Income Credit Payments
- What is Workers' Compensation Insurance?
- Who is Required to Carry Workers' Compensation Insurance?
- Self-Employed Persons
- Annual Employment Forms
- Employment Verification
- State New Hire Registry
Copyright © 2008-2012 Larry Villano. All rights reserved.