Payroll Tax Information - A General Overview

Here's some general payroll tax information you can use in learning about payroll tax basics. If you have employees, you are required by the Internal Revenue Service (IRS) to withhold payroll taxes and submit reports and payments to the IRS.

Types of Taxes to be Withheld

The IRS requires that all US employers withhold three types of taxes from employee’s wages before paying the employee. The types of taxes to be withheld are: Federal income withholding tax, Social Security tax and Medicare contributions. In addition to federal payroll tax requirements, many states also have a personal income tax for workers - so you will need to withhold state payroll taxes as well.

How Often to Report and Pay Payroll Taxes

Generally speaking, the IRS will require you to file payroll tax reports and make payroll tax payments on a schedule that is determined by the size of your business, the number of employees you have and the amount of payroll taxes that are withheld.

Most business owners will be required to file tax reports and make tax deposits once a month. Micro businesses may only be required to file reports and make payments once a year. The largest businesses and companies may be required to make payroll tax deposits almost immediately following a payday. In order to find out what types of reporting and payment requirements are mandated for your business, you should seek the advice of a certified public accountant or visit the IRS website for more information.