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 information regarding moving expense reimbursements, effective January 1, 2018.
Updated to include new information (under the October checklist) regarding moving expense reimbursements and payments, effective January 1, 2018.
Updated to reflect new hire notice requirements in the forthcoming state paid sick leave law.
Updated to include notice requirements under the Stop Sexual Harassment in New York City Act, effective September 6, 2018.
Updated to reflect amended monthly pay period lag time requirements in Michigan, effective September 1, 2018.
Updated to include a development regarding the San Francisco Payroll Expense Tax.
Updated to reflect new hire notice requirements under the forthcoming paid family and medical leave law.
Updated to include final regulations regarding non-automatic filing extensions for information returns, effective August 3, 2018.
An explanation of the process of payroll withholding of federal, state and local income taxes and Social Security and Medicare (FICA) taxes.