Bookkeeping and payroll
Payroll tax
Payroll tax is the federal income, Social Security and Medicare tax an employer withholds from wages, plus the employer's own share of certain taxes.
When a business pays employees, it must hold back federal income tax and the employee share of Social Security and Medicare tax. It adds its own share of Social Security and Medicare tax and pays federal unemployment tax. The IRS calls these employment taxes.
The employer deposits the taxes on schedule and reports them, usually on Form 941. It also gives each worker a Form W-2. Withheld tax belongs to the government, so late deposits bring penalties fast. Review the payroll page for how payroll runs.
Related terms
Sources
Talk to Wallace CPA
Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one.