A W-2 tax form shows important information about the income you’ve earned from your employer, amount of taxes withheld from your paycheck, benefits provided and other information for the year. You use this form to file your federal and state taxes.
A payroll administrator needs to do detailed planning of the whole payroll process. There is always work managing ongoing tasks that need attention and constant monitoring of changes to tax withholding, contribution, and other things to consider in the process. The payroll process can be split into...
Under the Affordable Care Act (ACA), you had to have health insurance or face a tax penalty called the shared responsibility payment for tax years before 2019. You could get minimum essential coverage through your employer, government programs like Medicaid and Medicare, or ACA marketplaces. The...
But there are exceptions. Members of the following groups are not required to pay OASDI taxes: 1. Religious groups: Certain religious groups and members of the clergy can opt out of paying Social Security and Medicare Taxes. Their nonpayment means they will not receive Social Security ...
Each pay period, you must deduct 6.2% for Social Security tax (until the wage base is met) and 1.45% for Medicare tax. You’re also required to match these deductions, which brings the total FICA tax per employee to 15.3%. Federal Unemployment Tax Act (FUTA) Most employers contribute to...
Withholding tax may sound like a new concept, but there’s a good chance you’ve already dealt with it: As the name implies, it's a sum of money withheld from most employees’ paychecks. The important thing is to make sure you’re having the right amount taken out. What is withholdin...
Under federal law, employers must withhold Medicare and Social Security taxes from the wages of their statutory employees. This is done by withholding the employment taxes under the Federal Insurance Contributions Act, also known as FICA taxes. Certain states require employers to withhold other taxes...
There are a number of ways to reduce your taxable income. One way is to make sure you claim every tax deduction you can. Also, when choosing between the Standard Deduction and itemized deductions, pick the larger of the two. The more you can deduct, the more you can subtract from your...
In a standard salaried job, tax withholding is the responsibility of the employer. This is not always the case for someone working on commission. That's because they may be an employee of the company or they may be an independent contractor who, despite working on behalf of the company, is...
Employers also pay payroll taxes. They pay 6.2% of your income amount toward Social Security and 1.45% of your income amount toward Medicare so the government gets a total of 15.3% of your total income for these two taxes.7 What Is a Payroll Tax Cut?