Accounting All-in-One For Dummies (+ Videos and Quizzes Online), 3rd Edition

Chapter 5

Taxing Payrolls

IN THIS CHAPTER

Tallying the employer’s share of Social Security and Medicare

Filing and paying unemployment taxes

Figuring out workers’ compensation

Keeping accurate employee records

After your company hires employees, you need to complete regular reports for the government regarding the taxes you must pay toward the employees’ Social Security and Medicare, as well as unemployment taxes. In most states, employers also are required to buy workers’ compensation insurance based on employees’ salary and wages.

This chapter reviews the federal, state, and local government reporting requirements for employers as well as the records you, the accountant, must keep to complete these reports. You also find out about the requirements for buying workers’ compensation insurance.

Paying Employer Taxes on Social Security and Medicare

In the United States, both employers and employees must contribute to the Social Security and Medicare systems. In most cases, employers share equally with employees the tax obligation for both Social Security and Medicare.

As discussed ...