Step 2: Calculate Employee Tax Withholdings Once you have identified your employees’ gross wages, you can now determine the amount you need to deduct to pay their taxes. In most states, employers should withhold different tax forms, including federal, state, and FICA taxes, from every paycheck...
Gross pay is the starting point for all calculations related to employee compensation and taxes. What is net pay? Net pay, commonly called “take-home pay,” is the amount paid to employees after federal, state and local income taxes, as well as other deductions for health insurance premiums...