Top 5 Questions Revolving Around Payroll Services Sacramento CA

You engaged a payroll services Sacramento CA provider to handle your payroll and taxes. But what about your responsibilities as an employer to pay taxes? Which payroll taxes are the obligation of the employee? How do you figure out your payroll taxes?

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By combining our payroll, tax, HR, time tracking, and workers' compensation solutions, Nexus HR's All-Inclusive Payroll bundle improves business efficiency. Employers and employees have different responsibilities when it comes to taxes. Here, we'll go through the fundamentals with you.

1. What is the meaning of payroll tax?

If your company employs people, you must deduct payroll taxes from their paychecks and pay all applicable federal, state, and local taxes. State unemployment taxes are mostly the obligation of the employer at the state level. Always double-check your local regulations, as some payroll taxes are as specific as the municipality or township in which you operate.

2. Which employees are subject to taxation?

Before you can do any of these calculations, you must first figure out how many taxable employees you have. While this may seem like a no-brainer, it's easy to ignore the differences in tax obligations between employees and independent contractors. Precise payroll solutions taxes apply to employees, whereas independent contractors are liable for their own taxes.

3. What are the current rates of taxation?

You must know the current rates in order to compute your payroll tax. Keep in mind that the information on the employee's Form W-4 has an impact on how much or how little they are taxed.

Here are some figures from the federal government:

State unemployment varies widely depending on factors such as the type of business and the state in which it is located.

·         The taxable earnings base for Social Security is $137,200.

·         The Medicare tax rate is 1.45% of an employee's gross income.

·         The FUTA tax rate is 6% on the first $7,000 in wages paid to an employee.

·         The tax rate under the Self-Employment Contributions Act (SECA) is 15.3 percent.

4. What do you mean by taxable wages?

What are taxable wages under healthcare payroll services? Taxable wages are, at their most basic level, remuneration for services rendered. Salary, bonuses, and gifts are all examples of this. Other forms of compensation, such as reimbursement for company expenses, may not qualify as taxable wages. Nontaxable costs must be necessary, reasonable, and business-related, and employees must document them with receipts or expense reports.

5. Where can I find information and resources?

This overview merely scratches the surface of how to figure out your payroll taxes. As you can see, it can be quite difficult. Visit our website, Nexus HR, if you want to make some of your own calculations. You'll find calculators for salary paychecks, FICA tip credit, and gross-up, among other things, here. Both you and your staff will benefit from these calculators.

Are you still looking for assistance? Contact one of our representatives today to get your business up and running with the best payroll services Sacramento CA available.