What Are Company Payroll Taxes?
Employers are required to withhold and pay their employees' taxes to the government. Further, employers must pay their own portion of payroll taxes, which are also referred to as company payroll taxes.
Other People Are Reading
-
Social Security
-
The Federal Insurance Contributions Act (FICA) includes Social Security taxes. Employers are required to pay a matching amount of 6.2 percent up to the annual wage maximum. The wage limit for 2009 is $106,800.
Medicare
-
FICA also includes Medicare taxes. The employer must pay a matching amount of 1.45 percent of the employees' wages. There is no wage limit for Medicare taxes.
-
FUTA
-
Company payroll taxes include withholdings according to the Federal Unemployment Tax Act. The employer is responsible for paying 6.2 percent of the first $7,000 of each employee's wages.
SUTA
-
The employer is required to pay state taxes according to the State Unemployment Tax Act. State tax rates vary by state. An employer should check with his state's Department of Labor to determine his tax rate and wage limit.
Tax Filings
-
An employer is required to make federal tax deposits and file quarterly and annual tax returns for his company. Failure to pay and file taxes timely and accurately can result in penalties from the government.
-
