What You Need To Know About Paying Payroll Taxes
It helps to define what exactly these taxes are
. At the very basic level they are taxes that are required to be paid on your payroll. To be even more specific they are federal income taxes that you are expected by law to withhold from the paychecks of those who are in your employ. They are also Social Security and Medicare taxes that you withhold from your workers, as well as the amount you set aside to match it with. Taxes are also the federal unemployment taxes that are based upon your total gross amount in terms of payroll.
You may decide to pay these taxes by using tax deposit coupons or the EFTPS online system. If you decide to use the tax deposit coupon then this means using form 8109-B.You must fill out the relevant boxes on the form which stipulate the taxes you need to pay as well as the amount of money that you are depositing for payment. Your next order of business for your business is to take the tax deposit coupon to your local financial institution (it needs to be a bank and not a credit union) in order to make your deposit.
Your second option to pay your taxes is the electronic federal tax payment system (EFTPS). First you must go to the website found at http://www.eftps.gov/ and from there you need to complete the registration process. Once you have registered you can then use the site to pay your taxes. It is simple, easy and convenient to use this approach. Whatever amount you are paying can be deducted from the business bank account you have.
Regardless of which method you choose to make the payment it is important that you are well aware of when you need to make it. If you make it late then there will be penalties to deal with. Be aware that payment deposit requirements are contingent upon your payroll tax liability size.
As an employer you have certain responsibilities in regards to the taxes for your employees. You must be aware of these responsibilities in order to comply with them. For example you are responsible for withholding specific types of taxes from your employees. These taxes include all of the taxes that employees are required to pay such as federal taxes, state taxes and local taxes. The taxes you withhold from your workers are according to what they have designated. You also must set aside both your portions of Social Security and Medicare as well as each worker's portion.
It is your responsibility to remit both the employer as well as the employee taxes to the necessary agencies. For instance, you must pay the IRS the federal income tax you have withheld as well as the necessary Social Security and Medicare amounts. It is also your responsibility to report to relevant agencies any tax liabilities that have taken place. You also need to let your employees know of the same.
by: Andrew Stratton
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