Employer's Tax Guide.
This page explains your tax responsibilities as an employer, the requirements for withholding, depositing, reporting, paying, and correcting employment taxes.
It explains the forms you must give to your employees, those your employees must give to you, and those you must send to the IRS and SSA.
This page does not have tax tables you need to figure the taxes to withhold from each employee for 2010.
References to “income tax” in this guide apply only to “federal” income tax.
Contact your state or local tax department to determine if their rules are different.
Additional employment tax information is available in Publication 15-A, Employer’s Supplemental Tax Guide.
Publication 15-A includes specialized information supplementing the basic employment tax information provided in this publication.
Publication 15-B, Employer’s Tax Guide to Fringe Benefits, contains information about the employment tax treatment and valuation of various types of non cash compensation.
Most employers must withhold (except FUTA), deposit, report, and pay the following employment taxes:
1. Employer Identification Number (EIN)
If you are required to report employment taxes or give tax statements to employees or annuitants, you need an employer identification number (EIN).
The EIN is a 9-digit number the IRS issues.
The digits are arranged as follows: 00-0000000.
It is used to identify the tax accounts of employers and certain others who have no employees.
Use your EIN on all of the items you send to the IRS and SSA.
For more information, get Publication 1635, Understanding Your EIN.
If you do not have an EIN, you may apply for one online.
Go to the IRS website at www.irs.gov and click on the Apply for an Employer Identification Number (EIN) Onlinelink.
You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4 to the IRS.
Do not use a social security number (SSN) in place of an EIN.
2. Who Are Employees?
See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee.Miami Tax
3. Family Employees
One spouse employed by another.
The wages for the services of an individual who works for his or her spouse in a trade or business are subject to income tax withholding and social security and Medicare taxes, but not to FUTA tax.
However, the payments for services of one spouse employed by another in other than a trade or business, such as domestic service in a private home, are not subject to social security, Medicare, and FUTA taxes.
4. Employee’s Social Security Number (SSN)
You are required to get each employee’s name and SSN and to enter them on Form W-2.
This requirement also applies to resident and nonresident alien employees.
You should ask your employee to show you his or her social security card.
Applying for a social security card.
Any employee who is legally eligible to work in the United States and does not have a social security card can get one by completing Form SS-5, Application for a Social Security Card, and submitting the necessary documentation.
You can get this at SSA offices, by calling 1-800-772-1213, or from the SSA website at www.socialsecurity.gov/online/ss-5.html.
The employee must complete and sign Form SS-5; itcannot be filed by the employer.
5. Wages and Other Compensation
Wages subject to federal employment taxes generally include all pay you give to an employee for services performed.
The pay may be in cash or in other forms. It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits.
It does not matter how you measure or make the payments. Amounts an employer pays as a bonus for signing or ratifying a contract in connection with the establishment of an employer-employee relationship and an amount paid to an employee for cancellation of an employment contract and relinquishment of contract rights are wages subject to social security, Medicare, and federal unemployment taxes and income tax withholding.
Also, compensation paid to a former employee for services performed while stillemployed is wages subject to employment taxes.
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