Week 7 Payroll Taxes

Week 7 Payroll Taxes - P 2 Payroll Liabilities Employers...

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Employers incur expenses and liabilities from having employees. Payroll Liabilities P 2
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12/10/10 Employee Payroll Deductions FICA Taxes Medicare Taxes Federal Income Tax State and Local Income Taxes Voluntary Deductions Gross Pay Net Pay P 2
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12/10/10 FICA Taxes — Soc. Sec. FICA Taxes Medicare 2006: 6.2% of the first $94,200 earned in the year ( Max = $5,840). 2006: 1.45% of all wages earned in the year. Employers must pay withheld taxes to the Internal Revenue Service (IRS). Employee FICA Taxes Federal Insurance Contributions Act (FICA) P 2
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12/10/10 Amounts withheld depend on the employee’s earnings, tax rates, and number of withholding allowances. Employers must pay the taxes withheld from employees’ gross pay to the appropriate government agency. Federal Income Tax State and Local Income Taxes Employee Income Tax P 2
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12/10/10 Amounts withheld depend on the employee’s request. Employers owe voluntary amounts withheld from employees’ gross pay to the designated agency.
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Week 7 Payroll Taxes - P 2 Payroll Liabilities Employers...

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