How do I determine my payroll tax liabilities?
Your payroll tax liabilities will include the following:
1. Social Security and Medicare taxes that were to be withheld plus your company’s matching of those taxes.
2. State and federal unemployment taxes. Your state can tell you the rate for your company and the wages to which the rate applies. For example, it might be 5% on the first $9,000 of annual wages and salaries. The federal rate is 0.8% on the first $7,000 of annual wages and salaries.
3. Check with your city, county, and state for any other payroll taxes.
In addition to the payroll taxes, you may have payroll related liabilities for worker compensation insurance, health insurance, 401-k contributions, pensions, vacations, and so on. Your liabilities will also include other payroll withholdings that were to be remitted for the employee, but have not yet been remitted.
Learn more about Payroll Accounting. In addition try our Crosswords and Word Scramble puzzles on payroll accounting.
About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.
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I have a bonus of 10000.00 and had to split it in half (5000.00), when I calculated the tax on the 5000.00 it was half of the 10, why? Wouldn’t the taxes be less on a smaller amount?
May be because the percentage of tax to be deduct to your bonus was fixed. So wether the amount of your bonus was lessen, still its have the same percentage of taxes to be deduct. And the result is that, when you add all your deducted taxes it would be the same to the amount deducted for the whole amount of your bonus.
sir..its quiet difficult ofr me to do my job as bookkeeper because i dont have full knowledge on accounting??can you help me??i’ve been working in a Cooperative