Federal Income Tax Withholding Calculator
Federal Income Tax Withholding Calculator
Federal Income Tax Withholding Calculator
Determining the exact amount of federal taxes to withhold from your employees' wages must be done with complete accuracy. A federal income tax withholding calculator can help you determine the accurate tax rate. As the employer, it is your responsibility to accurately withhold the appropriate taxes. There are federal income tax withholding calculators available to assist you.
Home Business Tax Deduction - Save Your Money From Taxes
Not only are you, the employer, responsible for the correct amount to be withheld, but you are also responsible for accounting for what the taxes are for. Here are a few examples:
FICA Taxes
FICA stands for the Federal Insurance Contributions Act, and consists of both Social Security and Medicare taxes. Social Security and Medicare taxes are paid both by the employees and the employer. Employees pay half and employers pay the other half, totaling up to 15.3%. The 15.3% FICA tax consists of the following:
Start a Home Business for Tax Purposes
· Social Security (Employee and employer pay 6.2%)
· Medicare (Employee and employer pay 1.45%)
Reporting Payroll Taxes
Employers are required to report their payroll tax obligations and to deposit payroll taxes in a timely manner. Reporting requirements include:
· Making federal tax deposits
· Annual federal unemployment tax return (Form 940 or 940EZ)
· Employer's quarterly payroll tax return (Form 941)
· Annual Return of Withheld Federal Income Tax (Form 945)
· Wage and Tax Statements (Form W-2)
Capital Gains Tax Loopholes Shrinking
Employers also have obligations to file reports with various state and local agencies.
You might want to look into a software program that will ease the stress of processing payroll and the responsibility of the tax amounts to be deducted, paid and reported. I would recommend using a program such as QuickBooks, which offers a federal income tax withholding calculator.
QuickBooks offers payroll processing for a minimal fee which reduces your stress about calculating payroll. By simply clicking a button, payroll can be done.
To take advantage of the federal income tax withholding calculator and more information on payroll processing, visit QuickBooks Payroll today.
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