HR Support on Tax and Payroll Withholding Rules

Editor's Note: Avoid penalties by properly withholding and remitting income and employment taxes.

Rena PirsosOverview: 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 employees' 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

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