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You are awesome!
So glad you are on our team! - Rod, DDM
Payroll Services
As a business owner, you can't afford to have payroll
errors.
Not only can it be difficult to reconcile where the error
occurred, but it can also be costly to you, in both your time and financial
penalties.
Let Schwartz & Schwartz handle your payroll needs so you
and your admin staff can spend time on other areas of your business.
You'll gain an experienced payroll administrator who is
current on all tax laws, filing requirements, administrative form
requirements, tax calculations, and year-end reporting. We
manage all areas of your payroll processing and administration, or we can
assist you if you do payroll in-house.
Our services include:
- Employer Identification Number Application
- Payroll processing of
wages, checks and direct deposits
- Social security and
Medicare tax calculations
- Federal and State unemployment tax
calculations
- Federal and State income taxes withheld calculations
-
Annual, Quarterly, and Monthly employer Federal and State filings
- W2
processing and W3 year-end filings
- New employee enrollment
- Employee payroll information updates and maintenance
To learn more about our Payroll services, please contact us
at 800.471.0045 or
use our
online request form to schedule an
appointment.
What Every Employer Should Know
Currently, as many as five different taxes may apply
to employers. We'll cover each specific type below for 2009 and
what you need to know to ensure that you're staying on top of all that's
required of you as an employer.
Social Security and Medicare Taxes:
Wages paid to an employee are subject to social security (FICA) taxes
up to $106,800 of wages paid and Medicare taxes on all wages paid.
Social Security taxes
should be withheld from employees’ compensation at a rate of 4.2%
(for 2011) and
Medicare taxes should be withheld at a rate of 1.45%. The employer is
required to match any social security and Medicare taxes withheld. The
value of many fringe benefits such as food, lodging, clothing, and other
non-cash items provided to the employee may not be subject to social
security or Medicare taxes
Federal Unemployment Taxes
Federal unemployment taxes (FUTA) will be due for employees at the
effective rate of 0.8% and will generally be limited to the first $7,000
earned during the year by each employee. However, if the state
unemployment taxes are not paid in a timely manner, the FUTA rate
increases to 6.2%.
Federal Income Taxes Withheld
Most employees will request that federal taxes be withheld from each
paycheck and submitted to the government. Tables contained in the "Circular
E" (available at
www.irs.gov) determine the rate at which federal income taxes
should be withheld for these employees. Each year, the IRS provides
employers with a Circular E. If
you are unsure as to the amount to be withheld each pay period, please
contact your payroll service provider.
State Unemployment Taxes
In
Massachusetts,
an employer is required to register with the state's Division of
Unemployment Assistance and remit taxes to that agency on a quarterly
basis. Massachusetts state
unemployment taxes are generally limited to the first $14,000 earned
during the year by each employee.
Failure to make timely payments of the quarterly unemployment taxes due
will result in the federal unemployment tax rate increasing from 0.8% to
6.2%.
State Income Taxes Withheld
Most employees will request that state income taxes be withheld from
each paycheck and submitted to the government. The department of revenue
of your state will be able to provide information regarding the proper
method of submitting any amounts withheld. Tables contained in the
Massachusetts
"Circular M" (available at
www.mass.gov) determine the rate at which
Massachusetts
income taxes should be withheld for these employees. If you are unsure as to
the amount to be withheld each pay period, please contact our office.
Reporting Taxes Due
Businesses that have employees will need to complete federal Form 941 on a
quarterly basis or Form 944 on an annual basis to report and pay any social
security taxes, Medicare taxes and federal income taxes withheld. Form 940
will need to be prepared and filed annually to report and pay federal
unemployment taxes.
Any state unemployment taxes or state income taxes withheld or otherwise due
will need to be reported to the proper government agency in accordance with
their specific guidelines. Most
states have web-based reporting and payment options available.
Submitting Taxes Due
Any social security and Medicare taxes, federal unemployment taxes, or
federal income taxes withheld or otherwise due should be submitted in
connection with filing the applicable monthly, quarterly or annual payroll
tax forms.
Any state unemployment taxes or state income taxes withheld or otherwise due
will need to be submitted to the proper government agency in accordance with
the agency’s specific guidelines.
Issuing W-2's
All businesses are required to issue completed Forms W-2 to its employees
prior to January 31st. Form W-2
should reflect the employee's gross taxable earnings as well as the taxes
withheld. Copies of Forms W-2
must be submitted to the Social Security Administration prior to February
28th along with Form W-3.
Worker's Compensation Insurance
Very important!! Most insurance companies will only protect businesses
up to a certain limit. Those that have employees, therefore, may be required
to purchase an additional type of insurance known as worker’s compensation
insurance. Prior to hiring any employees, businesses should always remember
to notify their insurance agents.
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