Employer’s portion for payroll taxes
After paychecks are sent to employees, your work is only half done. Here’s and explanation of, and how to calculate, the employer’s portion for payroll taxes. These employer taxes are above and beyond your employees’ gross pay.
The employer’s portion for payroll taxes includes these elements:
- Social Security (6.2% up to the annual maximum per employee)
- Medicare Taxes (1.45% of wages)
- Federal unemployment taxes (FUTA)
- State unemployment taxes (SUTA)
Note: Social Security and Medicare Taxes are commonly referred to as FICA taxes (Federal Insurance Contributions Act). These are paid for by both the employers and the employees in identical contribution amounts.
Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.
Currently rated by 0 people