Overview: Employers are required to withhold payroll taxes from each employee's pay and remit and report the amounts withheld to the federal government. Payroll taxes include:
Employers that fail to fulfill these requirements are liable for serious penalties. HR managers that oversee payroll departments are responsible for avoiding such penalties by ensuring that payroll tax laws are complied with.
Trends: An employer must use IRS Form W-4 to calculate the amount of income tax to withhold from each employee's pay. The IRS completely redesigned Form W-4 starting with calendar year 2020 to comply with changes made by the 2017 federal tax reform law. Because the changes to the form are so extensive, an employer must know which employees it is required to provide the new form to, how those employees should complete the form, and how to use the information provided by each employee on the form to determine proper income tax withholding.
Author: Rena Pirsos, JD, Legal Editor
The IRS and DOL announced that small and midsize employers will be able to begin claiming two new refundable payroll tax credits designed to immediately and fully reimburse the cost of providing COVID-19-related leave to their employees.
Updated to reflect a changed IRC reference date in Indiana and Maine.
Updated in relation to the redesigned 2020 Form W-4.
Millions of US workers will be entitled to paid leave for the first time under a coronavirus emergency relief law signed last night by President Trump.
Amidst the growing global coronavirus pandemic, the House of Representatives has passed a sweeping bill that aims to strengthen the safety net for workers.
Updated to reflect proposed Form W-4 regulations.
Updated to include information regarding the redesign of lock-in letters and modification notices.
Updated to include the commuter benefits law, effective March 1, 2020.
HR guidance on compliance with payroll taxes, including income taxes, Social Security and Medicare (FICA) taxes, and unemployment, disability and workers' compensation insurance taxes.