United States Payroll Taxes by State

Alabama Payroll Taxes

11 Steps to Compliance in the Dixie State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Alaska Payroll Taxes

11 Steps to Compliance in the Last Frontier State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Arizona Payroll Taxes

11 Steps to Compliance in the Grand Canyon State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Arkansas Payroll Taxes

11 Steps to Compliance in the Nature State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

California Payroll Taxes

11 Steps to Compliance in the Golden State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA) (Paid in full to the IRS by the employer)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA) (Paid in full to the state by the employer)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

State Disability Insurance (employee-paid)

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Colorado Payroll Taxes

11 Steps to Compliance in the Rocky Mountain State

You have a business and you have employees. They work for you, you pay them. Sounds simple enough, right? Don’t let all that clean mountain air fool you. As it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Connecticut Payroll Taxes

11 Steps to Compliance in the Constitution State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Delaware Payroll Taxes

11 Steps to Compliance in the First State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

District of Columbia Payroll Taxes

11 Steps to Compliance in the Nation’s Capital

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

Reciprocal Agreements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Florida Payroll Taxes

11 Steps to Compliance in the Sunshine State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Georgia Payroll Taxes

11 Steps to Compliance in the Peach State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Hawaii Payroll Taxes

11 Steps to Compliance in the Aloha State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Idaho Payroll Taxes

11 Steps to Compliance in the Gem State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Illinois Payroll Taxes

11 Steps to Compliance in the Land of Lincoln

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

Reciprocal Agreements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

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Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Indiana Payroll Taxes

11 Steps to Compliance in the Hoosier State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

Reciprocal Agreements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

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Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

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Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

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Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.

Iowa Payroll Taxes

11 Steps to Compliance in the Hawkeye State

You have a business and you have employees. They work for you, you pay them. It sounds simple enough. But, as it turns out, there are quite a few layers of legislation and taxation involved in running payroll.

Payroll compliance (getting your payroll right) means obeying all these rules at a federal, state and local level. The following steps will help you understand how certain laws and payroll taxes (employment taxes) affect your payroll and your responsibilities as an employer.

---

Step 1

Follow Wage and Labor Laws

The federal minimum wage and overtime rules were established by the Fair Labor Standards Act (FLSA). If a state has its own laws, in most cases, workers are entitled to the higher rate or standard.

Wage and labor laws affect how gross pay is calculated. In turn, the gross pay amount is used to calculate income and payroll taxes. Gross pay minus these deductions equals net pay.

Minimum Wage Requirements

Overtime Legislation

Payroll Frequency

---

Step 2

Withhold the Proper Income Tax Amounts

Income tax in the United States has been structured as a pay-as-you-go tax. Employers are responsible for withholding (deducting) the proper amount of federal, state and local tax from each employee’s paycheck during each pay cycle.

Income Tax Requirements

Reciprocal Agreements

---

Step 3

Calculate Tax on Bonus Wages and Account for Qualified Deductions

In addition to standard wages, bonuses, commissions, overtime pay, back pay, accumulated sick pay are considered bonus wages (supplemental wages), or essentially taxable income that must be handled properly during the payroll process.

Income Tax on Bonus Wages

Conversely, contributions to health savings accounts and retirement accounts (401Ks) are tax deductible, up to certain set amounts. The federal standards below apply in every state, district and territory.

Tax-Deductible Contribution Limits

---

Step 4

Withhold and Contribute FICA Taxes

Medicare and social security are part of the Federal Insurance Contribution Act (FICA). FICA taxes are split evenly in terms of employee withholding and employer contributions amounts. However, the employer is responsible for processing both amounts with each payroll.

Federal Insurance Contribution Act (FICA) Taxes

---

Step 5

Report and Pay Federal and State Unemployment Taxes

Federal unemployment tax (FUTA) is 100% employer-paid. The rules for state unemployment tax (SUTA) vary by state, with some states requiring the employer to cover all the costs and others requiring employee contributions as well.

Federal Unemployment Tax (FUTA)

*Employers can claim up to 5.4% credit for FUTA, as long as all of the SUTA taxes were paid on time. This deduction reduces the net rate for FUTA to 0.6%.

State Unemployment Tax (SUTA)

---

Step 6

Comply With Workers’ Compensation and Disability Insurance Rules

Employers must also follow each state’s coverage requirements for workers’ compensation and disability insurance. (Federal workers’ compensation is a federal program that only applies to specific groups of federal government workers.)

Workers’ Compensation

Disability Insurance

---

Step 7

Register for Your Business Tax Identification Numbers

Businesses must have specific identification (ID) numbers for making payments to the appropriate tax authorities. You will need these numbers for running payroll, as well as for any other interactions you have with these agencies. (Note: Some states will not accept temporary ID numbers. Verify with your state and ensure you have a valid ID before running payroll.)

How to Get Your Business Tax IDs

---

Step 8

Meet Your Reporting Requirements

In addition to paying and withholding taxes, employers are also subject to specific reporting requirements.

Reporting Requirements

---

Step 9

Know Where to Look for More Information

While the information on this page hits the highlights, for more details you can check out any of the websites below.

Helpful Websites

---

Step 10

Know Why Getting Your Payroll Taxes Right Really Matters

It’s the law and the IRS is fond of enforcing it.

• If you purposefully side-step your responsibilities, you could be subject to a number of fines and penalties.

• The withholding and deduction amounts are reported in each employee’s W-2, which must be sent to the employee and the Social Security Administration (SSA) by January 31 each year.

• If you don’t withhold the proper amounts of income tax, your employees may face large tax payments on their personal income taxes. (It’s not a great confidence builder either.)

• Failing to contribute to programs, like Medicare or social security, also means that employees will qualify for lower levels of benefits or possibly none at all.

---

Step 11

Automate Your Payroll Compliance

Small business payroll software, like Wagepoint, saves you time and money by automating payroll tax calculations and reporting in order to improve compliance and reduce the risk of costly mistakes. Learn more by contacting us or signing up today.