Overview: The most important payroll process for all employers is undoubtedly withholding for federal, state and local income and employment taxes and timely remitting the amounts collected to the appropriate government agencies. In turn, proper withholding leads to correct employee paychecks, and timely remitting of withheld taxes avoids serious employer penalties.
The income and employment tax withholding process requires an employer to understand:
Author: Rena Pirsos, JD, Legal Editor
Updated to reflect new hire notice requirements under the forthcoming Massachusetts Pregnant Workers Fairness Act.
Updated to reflect a reduction in the Waterfront of New York Harbor Commission Assessment rate, effective July 1, 2017.
Updated to reflect forthcoming notice requirements under the New York City Fair Work Practices ordinances.
Updated to include the forthcoming requirement to notify employees about the Earned Income Tax Credit.
Updated to include a forthcoming penalty for rejected EFT or ACH payments of withheld taxes.
An explanation of the process of payroll withholding of federal, state and local income taxes and Social Security and Medicare (FICA) taxes.