How much you withhold depends on your payroll frequency, size of the wage payments, number of exemptions claimed by each employee and their marital status. You must issue each employee a W-4 form for determining withholding exemptions. Social Security, Medicare These taxes must be withheld from employee pay. The current rates are 6.2 percent for Social Security and 1.45 percent for Medicare.
Most employers pay both federal and state unemployment tax under the Federal Unemployment Tax Act.
The tax is due on the last day of the first month after each quarter ends, and can be paid by the electronic transfer of money or in an authorized financial institution using Form 8109, Federal Tax Deposit Coupon. Forwarding the taxes Withholding taxes are paid monthly or semiweekly, depending on the individual circumstances of the business. Large businesses are generally required to pay their tax within a day of each payroll. Details on your tax liabilities can be found in the IRS Tax Guide for Small Business and in The Employer's Tax Guide State taxes You also may be required to withhold and forward state income taxes and other local taxes charged to employees, employers and businesses. Additional taxes and fees may be levied against firms in specific industries.