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 a forthcoming nonresident telecommuter withholding law.
Updated to include forthcoming New York City new hire requirements.
Updated to reflect a rate reduction in Idaho, effective retroactive to January 1, 2018.
Updated to reflect forthcoming amendments to the annual return filing requirements.
Updated to reflect new state Form OK-W-4, effective March 1, 2018.
An explanation of the process of payroll withholding of federal, state and local income taxes and Social Security and Medicare (FICA) taxes.