Employment Taxes
- Withholding Taxes
- Social Security and Medicare Taxes
- Employer's Payroll Tax Liability
- State Employment Taxes
- Depositing Payroll Taxes
- Accuracy of Deposit Rule
- Employment Tax Payments With Return
- Federal Unemployment Tax (FUTA)
- Advance Earned Income Credit Payments
- Non-Employee Withholding Taxes
- Reporting Employment Taxes
- Household Employees
- Employment Tax Deposit Penalties
- Trust Fund Recovery Penalty
- Delinquent Employment Taxes
- Using a Payroll Service
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)
Quick Links
Hot Topics
Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Using a Payroll Service
<< Previous
Your Role When Using a Payroll Service
Your role as a payroll service user is simple.
You provide the payroll service with the information it needs to calculate the payroll, generate payroll checks, file tax reports, and pay employment taxes (a power of attorney will generally be required).
This can be done over the phone or whatever communication method is appropriate.
Tax Deposits: It a good idea to have the service handle everything, including tax deposits.
Hiring employees:
- Form W-4:
- Provide the service with a copy of Form W-4 for:
- New hires, and for
- Employees who later complete a new Form W-4 to make changes in their withholding information.
- Provide the service with a copy of Form W-4 for:
- State withholding:
- Provide the service with each employee's state withholding form.
- This doesn't apply in states with no income tax.
- Provide the service with each employee's state withholding form.
- Hourly employees:
- Provide the service with each employee's base hourly wage rate and payroll period (e.g., weekly, biweekly).
- Exempt employees (e.g., management):
- Provide the service with each exempt employee's base salary amount and payroll period (e.g., weekly, biweekly).
- Commission sales employees:
- Provide the service with the employee's:
- Base wage and commission structure.
- Provide the service with the employee's:
- Retirement plans:
- If you have a retirement plan for your employees, provide the service with a copy of the plan document.
Each payroll period:
- Hours worked:
- Advise the service of the hours worked for each hourly employee.
- Salaried employee:
- Advise the service if any additional amount is to be paid over the employee's base salary (e.g., a bonus)
- Advise the service of any other payroll-related information such as:
- Pay increases, sick days, vacation days, annual bonuses, employee terminations, etc.
Next:
Using a Payroll Service: What a Payroll Service Does
Related Links
- What Are Payroll Withholding Taxes
- Who Pays Social Security and Medicare Taxes?
- Social Security and Medicare Tax Rates
- Wage Base for Social Security Taxes
- Employer's Liability for Employment Taxes
- State Income Taxes
- State Unemployment Taxes (SUTA)
- Employer's SUTA Experience Rate
- Unemployment Insurance Claims
- Depositing Employment-Related Taxes
- Nonpayroll Tax Deposits
- When to Deposit Employment Taxes
- When To Determine Your Employment Tax Deposit Schedule
- How to Determine Your Employment Tax Deposit Schedule
- How to Deposit Employment Taxes
- When an Insufficient Employment Tax Deposit May Not Cause a Penalty
- Payment of Employment Taxes With Form 941 (or Form 944)
- Who Pays Federal Unemployment Taxes (FUTA)?
- FUTA Tax Deposits
- When You Can Pay FUTA Taxes Annually With Form 940
- Payments Exempt from FUTA Tax
- What Are Advance Earned Income Credit Payments?
- Withholding Taxes and Advance Earned Income Credit Payments
- Advance Earned Income Credit Payments Treated as Tax Deposits
- Reporting Advance Earned Income Payments
- Taxes Withheld From Income Distributions Not Related to Employment
- Depositing Payroll Taxes versus Reporting Payroll Taxes
- Employment Tax Forms
- Employment Tax Forms Explained
- Zero Wage Return
- Schedule H, Household Employment Taxes
- Taxes Reported on Schedule H
- Schedule H and Form 1040
- Filing Extension and Schedule H
- Filing Schedule H When You're Not Required to File a Tax Return
- Federal Income Taxes for Household Employees
- IRS Employment Tax Penalty Refund Offer
- Employment Tax Deposit Penalties
- Order in Which Employment Tax Deposits Are Applied
- What Are Trust Fund Taxes?
- How the Trust Fund Recovery Penalty is Assessed
- Who is Responsible For the Trust Fund Recovery Penalty?
- What Should You Pay First-Debts to Business Creditors or Taxes?
- Paying Past Due Taxes
- Advantages of Using a Payroll Service
Copyright © 2008-2012 Larry Villano. All rights reserved.