what is payroll tax for
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What is 'Payroll Tax' Payroll Tax. What is 'Payroll Tax'. Payroll tax is a tax that an employer withholds and pays on behalf of his employees, and it is based on the wage or salary of the employee. In most countries, including the United States, federal authorities as well as many state governments collect some form of payroll tax.
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Module 1: Payroll Taxes and Federal Income Tax Withholding Social Security tax and Medicare tax are types of payroll taxes. Social Security tax, also known as the Federal Insurance Contributions Act (FICA) tax, provide benefits for retired workers, disabled workers, and dependents of both.
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What kind of dog was Lassie? To be specific, Lassie (female on the show) was always played by a male Rough Collie and was Sable colored. I have two pure bred Tri-colored collies (one rough and one smooth) and am on the look out for a sable which is what I was looking for to begin with, but saw these and couldn't leave them behind.
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- Payroll tax is applied to a business’s New South Wales (NSW) wages that exceed the payroll tax threshold.The payroll tax rate is 5.45%.ayroll tax is applied to a business’s New South Wales (NSW) wages that exceed the payroll tax threshold. The payroll tax rate is 5.45%.
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What Are Payroll Taxes? Social security and Medicare taxes, also known as FICA taxes must be withheld from your employees' wages. As an employer, you must also pay a matching amount of FICA taxes for your employees. Currently the social security tax rate is 6.2%.ou are also required to pay a matching amount of social security and Medicare taxes for your employees and to pay State and Federal unemployment tax. Have each new employee complete IRS form W-4. You will use this form to calculate the amount of federal income tax to withhold from the employee's wages.
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Withholding tax A withholding tax, also called a retention tax, is a government requirement for the payer of an item of income to withhold or deduct tax from the payment, and pay that tax to the government. In most jurisdictions, withholding tax applies to employment income.ayments of rent may be subject to withholding tax or may be taxed as business income. The amounts may vary by type of income. A few jurisdictions treat fees paid for technical consulting services as royalties subject to withholding of tax.
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Withholding Tax Withholding Tax. The amount legally deducted from an employee's wages or salary by the employer, who uses it to prepay the charges imposed by the government on the employee's yearly earnings. The federal Income Tax system is a pay-asyou-go system that requires wage earners to pay federal tax as they earn income.
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U.S. Payroll Tax Deductions Social Security. Social Security taxes are another U.S. payroll tax deduction. Under the authority of the Federal Insurance Contributions Act (FICA), these payroll taxes are collected to fund Social Security initiatives, including retirement and disability programs.
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What Are Payroll Taxes? Social security and Medicare taxes, also known as FICA taxes must be withheld from your employees' wages. As an employer, you must also pay a matching amount of FICA taxes for your employees. Currently the social security tax rate is 6.2%.
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Payroll Taxes and Employer Responsibilities These payroll taxes are an added expense over and above the expense of an employee's gross pay. The employer portion of payroll taxes includes the following: Social Security taxes (6.2 percent up to the annual maximum) Medicare taxes (1.45 percent of wages) Federal unemployment taxes (FUTA) State unemployment taxes (SUTA)
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Payroll tax Payroll tax. Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff. Payroll taxes generally fall into two categories: deductions from an employee’s wages, and taxes paid by the employer based on the employee's wages.
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How Do I Calculate Payroll Taxes? [Update] State taxes are determined in much the same way. Every individual state’s tax board provides a calculating formula for tax withheld. To calculate the payroll tax, the employer must know the current tax rates. The Social Security tax rate for employees in 2016 is 6.2%, and the Medicare tax rate is 1.45%. The employer must contribute 6.2% for Social Security and 1.45% for Medicare. After reaching $118,500 in wages, Social Security deductions cease for both employee and employer.
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- The Payroll function is one of the fundamental functions of any organisation. 1  At the basic level, it ensures that all employees receive their wages. In practice, the payroll function extends to a fairly wide range of administrative and labour issues. The Payroll Function includes the following tasks:
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- What is payroll Accounting?   Payroll is one of a series of accounting transactions dealing with the process of paying employees for services rendered, after processing of the various requirements fo…r withholding of money from the employee for payment of payroll taxes, insurance premiums, employee benefits, garnishments and other deductions.
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Taxable wages Taxable wages. Taxable Wages, in payroll, is the sum of all earnings by an employee that are eligible for a particular type of tax. Each tax is different and has different regulations about limits to the amount of wages that can be considered taxable with respect to that tax. Example. A common example, the Federal Unemployment Tax Act (FUTA) tax in the United States had, in 2004, a taxable wage limit of $7,000.
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payroll Definition of payroll for English Language Learners. : 1  a list of the people who work for a company and the amount of money that the company has agreed to pay them. : 2  the total amount of money that a company pays to all of its employees.
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Federal Insurance Contributions Act tax Federal Insurance Contributions Act (FICA) tax /ˈfaɪkə/ is a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare —federal programs that provide benefits for retirees, the disabled, and children of deceased workers.or 2014, the employee's share of the Social Security portion of the FICA tax is 6.2% of gross compensation up to a limit of $117,000 of gross compensation (resulting in a maximum Social Security tax of $7,254).
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Nanny Tax The combination of payroll taxes withheld from a household employee and the employment taxes paid by their employer are commonly referred to as the nanny tax.
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payroll 1. (Industrial Relations & HR Terms) a list of employees, specifying the salary or wage of each. 2. (Banking & Finance) a. the total of these amounts or the actual money equivalent. b. (as modifier): a payroll tax.
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Payroll Handling payroll typically involves sending out payslips to employees. A payroll is a company's list of its employees, but the term is commonly used to refer to: 1  the total amount of money that a company pays to its employees.  a company's records of its employees' salaries and wages, bonuses, and withheld taxes.
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- Generally, income tax is considered a progressive tax--higher incomes are taxed at a greater percentage than lower incomes--and payroll tax is regressive---that is, it makes up a larger percentage of income as earnings fall.
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Payroll A payroll is a company's list of its employees, but the term is commonly used to refer to: the total amount of money that a company pays to its employees a company's records of its employees' salaries and wages, bonuses, and withheld taxes the company's department that calculates and pays these. Payroll in the sense of money paid to employees plays a major role in a company for several reasons. From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably af
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- Payroll expense is synonymous with the terms salary expense and wage expense. When an employer pays an employee for the employee's work -- usually through a salary or an hourly wage, as well as fringe benefits -- the payment is a payroll expense (money that the employer spent to pay costs associated with the payroll).
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Payroll The company is responsible for: 1  Paying the employer's share of payroll taxes. 2  For depositing tax dollars withheld from the employees' paychecks. 3  Preparing various reconciliation reports. 4  Accounting for the payroll expense through their financial reporting. 5  And filing payroll tax returns.
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What is Payroll Tax? - Definition & Example These taxes are called payroll taxes. The payroll tax is a multitude of taxes that are paid by the employer and in some cases, withheld from an employee's paycheck. The employer then remits these taxes to the appropriate tax authority. There are numerous types of payroll taxes, including: 1. Federal income tax withholding. 2.
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Payroll tax Federal social insurance taxes are imposed on employers and employees, ordinarily consisting of a tax of 12.4% of wages up to an annual wage maximum ($118,500 in wages, for a maximum contribution of $14,694 in 2016) for Social Security and a tax of 2.9% (half imposed on employer and half withheld from the employee's pay) of all wages for Medicare.