Employer and Employee Taxes

Basically, as an employer you become an arm of the government to help collect taxes. You’re responsible for paying Social Security tax, Medicare tax, federal withholding tax, and state withholding tax for your employees. There could also be local withholding tax for the city in which the business is located or the school district where the employee lives. In addition, you pay the employer’s side of Social Security and Medicare taxes, as well as taxes for the unemployment fund in your state.
This section explains each type of tax and how it’s calculated, then reviews how all this information is put together to calculate an employee’s paycheck. All taxes collected from your employees are deposited in the Accrued Payroll ...

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