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: the importance of obtaining and correctly recording employee Social Security Numbers; how to determine the amount of federal income and Social Security and Medicare (FICA) tax to withhold; the various federal income tax withholding and payment methods; federal recordkeeping requirements; and the penalties that are imposed for noncompliance.
Author: Rena Pirsos, JD, Legal Editor
Updated to reflect accelerated filing deadlines and new electronic filing threshold amounts starting with 2016 forms filed in 2017.
The already daunting tasks of closing out the year's payroll and complying with ACA information reporting requirements are compounded this year due to accelerated Form W-2 and Form 1099-MISC filing deadlines and significant ACA reporting changes. XpertHR rounds up resources to help an employer meet its year-end legal obligations to government agencies and employees.
The Social Security Administration has issued inflation-adjusted figures for 2017, including the Social Security taxable wage base, the earnings tests for retirees who return to work, the quarter of coverage requirement for Social Security benefits, and the cost of living adjustment (COLA) for Social Security benefits.
Updated to include forthcoming changes to Form IL-941 and the filing and payment schedules.
Updated to reflect notice requirements under Montgomery County's Earned Sick and Safe Leave Law, effective October 1, 2016.
Updated to include information on the forthcoming change in the local income tax structure and rates.
Updated to include information on the forthcoming termination of the reciprocal withholding agreement with Pennsylvania.
Updated to include information on the forthcoming termination of the reciprocal withholding agreement with New Jersey.
An explanation of the process of payroll withholding of federal, state and local income taxes and Social Security and Medicare (FICA) taxes.