Payroll Tax Help
Federal payroll taxes include federal income tax, Medicare tax, Social Security tax and federal unemployment tax. State payroll taxes vary by state, but generally include state income tax and state unemployment tax; in some cases, city and local income taxes, state disability insurance and job training taxes apply. Employers and employees should use the necessary resources to ensure compliance.
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Federal Assistance
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The Internal Revenue Service oversees federal payroll tax regulations. IRS Circular E is The Employer's Tax Guide; it contains valuable tax withholding, tax payment and tax filing information. The IRS sends the yearly publication to each employer it has on record. The IRS website also has comprehensive employment tax information, such as a payroll module that shows the purpose of each tax and the withholding processes; a withholding calculator that employee's can use to appropriately adjust their federal income tax withholding; and tax forms, including Publication 1494, used to calculate IRS wage levies. Additionally, the IRS has dedicated phone lines for both the employer and the employee.
State Help
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The state revenue/taxation agency administers the state income tax withholding guidelines. The employer can obtain withholding, payment and tax filing guidelines from the agency's website. State revenue agency names vary, such as Arizona Department of Revenue, Ohio Department of Taxation and Oklahoma Tax Commission. A separate division handles state unemployment tax, such as Michigan's Unemployment Insurance Agency and Georgia's Department of Labor. If city and local income tax applies, the state revenue agency may include the withholding instructions on its website, or different agencies may handle these taxes. If unsure, the employer can ask the state revenue agency for direction. Job training tax varies by state; for example, Arizona's Department of Economic Security and California's Employment Development Department oversees the state's job training tax.
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Course
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An individual just starting a career in payroll, bookkeepers, HR administrators, payroll managers, tax professionals, payroll directors, accountants and other payroll personnel can take courses that include payroll tax training. For example, the American Payroll Association offers classes, such as Advanced Payroll Concepts, Intermediate Payroll Concepts, Payroll Practice Essentials and Strategic Payroll Practices, which are based on the individual's payroll experience.
Considerations
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If the employer wants to minimize its payroll duties, it can outsource its payroll processing and tax duties to a payroll service provider. The provider withholds, pays and files the employer's tax returns with the IRS and the respective state agency. The employer should double-check the provider's work because some agencies penalize the employer for mistakes the supplier makes. Employers and employees facing tax liens and liens, audits or other penalties for payroll tax noncompliance can seek help from a payroll tax attorney.
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