IRS Payroll Taxes Rules

As an employer, you are responsible for paying state and federal payroll taxes on behalf of their employees. The employer would withhold income taxes and FICA (Social Security and Medicare) from your employees. The employer is responsible for other taxes such as State Unemployment Taxes (SUTA) and Federal Unemployment Taxes (FUTA) state and federal unemployment taxes.

There a monthly and semi-weekly depositors. Monthly depositors must deposit withholding taxes and payroll taxes by the 15th of the following month. Semi-weekly depositors must deposit by the Wednesday following a pay-period that ends on a Wednesday, Thursday, or Friday. If the pay-period ends on a Saturday, Sunday, or Monday, then the taxes must be deposits by the Friday following the pay-period.

1. Tax liabilities that exceeds $100,000 on any given day, must be deposited the next day.

2. FUTA and SUTA may be made quarterly depending on the amount owed. Once the FUTA or SUTA liability reaches $500 you must make a deposit in that quarter. Otherwise the FUTA and SUTA tax liability should be paid by January 31 of the following year.

Failure to deposit your tax liabilities when due can result in penalties.

For more information and insight email us at [email protected] or contact us at (301) 974-4568.

Diana McCalpin is an accountant who manages a Certified Public Accounting Practice in Laurel, Maryland which performs audit, accounting and tax services to customers. She loves to share information with clients to help them grow their businesses and be profitable.

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