Employer Payroll Taxes
If you are a business or company owner, you are already aware about employer payroll taxes. Though this task sounds simple as you only need to deduct various deductions from your employees’ gross pay, the various types of deductions and tax codes require someone who has an eye for detail to avoid error. Employer payroll taxes are different than those made by the employees. Although Medicare and Social Security contributions require employer co-contribution, these are not considered employer payroll tax expenses. To further understand employer payroll taxes, these are taxes paid over and above the wage salary amounts. Each state has different provisions regarding these deductions, but all employers in all states are required to pay state unemployment tax which should match the amount of their employees’ contribution. Another example of state imposed employer payroll taxes is the federal unemployment tax which is 6.2 percent of the first $7,000 of wages you pay to your employees annually.