Payroll Taxes

Workers will see less taxes deducted from their paychecks for Social Security. For the years 2011 and 2012, Congress has legislated a temporary payroll tax holiday designed to put more money into the hands of American workers.

Payroll taxes are the responsiblity of every employer. Find essential information on how to report payroll taxes.

An overview of Social Security taxes in America.

Small businesses may qualify to file payroll taxes annually instead of quarterly under a new IRS procedure. Find out if your business might qualify to file IRS Form 944 to report your annual payroll taxes.

Many new business owners do not factor in the cost of payroll taxes when hiring an employee. When they do not account for the company’s share of the FICA and unemployment taxes, they often end up with unexpected cash flow problems.

The Internal Revenue Service today issued temporary and proposed regulations that will significantly reduce tax filing burden for small business owners. Beginning January 1, 2006, certain employment tax filers will be able to file the new Form 944 (Employer's Annual Federal Tax Return) once a year rather than filing Form 941 (Employer's Quarterly Federal Tax Return) four times a year.

Frequently asked questions about payroll deductions, with general answers from the Internal Revenue Service. Answers are provided for general information only and should not be cited as any type of legal authority.

The official payroll tax guide. IRS Publication 15, Employer's Tax Guide (Circular E). Includes 2006 Wage Withholding and Advance Earned Income Credit Payment Tables.

Employers who hire previously unemployed workers may be exempt from paying the employer's share of Social Security taxes for 2010 under the HIRE Act.

The United States federal government imposes a Medicare tax of 2.9% on wages received by an employee and on business or farming income earned by self-employed individuals. Starting in the year 2013, Medicare taxes will be increased to 3.8% and expanded to cover both wage income and investment income for higher-income individuals.

Share your tips about how you will use your savings from the Social Security tax holiday. For 2011 and 2012, employees will paid 4.2% of their wage earnings for the Social Security tax, instead of the normal 6.2% rate. This translates into tax savings of up to $2,136 for 2011 and up to $2,202 for 2012. How will you use this tax savings?