{"id":4003,"date":"2023-02-13T05:47:00","date_gmt":"2023-02-13T05:47:00","guid":{"rendered":"https:\/\/synder.com\/news\/?p=4003"},"modified":"2024-11-14T09:54:44","modified_gmt":"2024-11-14T09:54:44","slug":"payroll-tax-basics-every-employer-needs-to-know","status":"publish","type":"post","link":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/","title":{"rendered":"Payroll Taxes for an Employer: How Is Payroll Tax Calculated?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>This article will explain the various payroll taxes imposed on employers and how they are calculated.<\/em><\/p>\n\n\n\n<!--more-->\n<!--noteaser-->\n\n\n\n<p class=\"wp-block-paragraph\">Payroll taxes can be daunting for employers to calculate and pay. With the numerous tax laws, regulations and compliance requirements, employers are required to be up-to-date on the latest regulations to ensure they\u2019re making accurate and timely payroll tax payments. The only thing that a business owner wants is to <a href=\"https:\/\/synder.com\/industry\/syndersync\/\">nail the tax season<\/a>. To do that, employers need to be aware of the process and their responsibilities from understanding how to calculate payroll taxes to filing the appropriate paperwork.<\/p>\n\n\n<div class=\"pk-block-border-all\"><em>This article has been prepared for informational purposes only and gives a general overview of payroll taxes. It is not intended to provide any tax advice. Keep in mind that it\u2019s better to consult a tax professional to ensure that the payroll taxes are properly calculated and reported.<br \/><\/em><\/div>\n\n\n<p class=\"wp-block-paragraph\">The calculation of payroll taxes can be complicated and time-consuming even with a calculator, so it\u2019s important to have a good understanding of how to get your payroll taxes right.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So how to calculate payroll tax? What has to be included? This article will help outline the basics of payroll taxes every small business owner needs to know about.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 id=\"contents\" class=\"wp-block-heading\"><b>Contents:<\/b><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">1. <a href=\"#1\">What is a payroll tax?<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">2. <a href=\"#2\">How to calculate payroll taxes<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#3\">Federal Insurance Contributions Act (FICA)<\/a><\/li>\n\n\n\n<li><a href=\"#4\">Federal Unemployment Taxes (FUTA)<\/a><\/li>\n\n\n\n<li><a href=\"#5\">State Unemployment Taxes (SUTA)<\/a><\/li>\n\n\n\n<li><a href=\"#6\">Income taxes<\/a><\/li>\n\n\n\n<li><a href=\"#7\">Voluntary payroll deductions<\/a><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">3. <a href=\"#8\">Payroll tax process steps<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4. <a href=\"#9\">2023 payroll taxes due dates for an employer<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"1\"><span id=\"what-is-a-payroll-tax\"><strong>What is a <\/strong><strong>payroll tax<\/strong><strong>?<\/strong><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A payroll tax is an amount of money that an employer is responsible for withholding from their employees&#8217; wages, and then paying to a governmental agency. It\u2019s a type of tax that\u2019s used to fund various social programs, such as Social Security and Medicare. Payroll taxes are generally calculated as a percentage of an employee&#8217;s gross wages and are paid to the government on a regular basis, such as quarterly or annually.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The amount of payroll taxes that are due will depend on the tax rate that applies to the employee&#8217;s wages, as well as any exemptions or deductions that the employee may be eligible for. The rate is usually determined by the IRS and can vary from state to state.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From their side, the employer is responsible for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Paying their share of payroll taxes;<\/li>\n\n\n\n<li>Depositing tax dollars withheld from the employees\u2019 paychecks;<\/li>\n\n\n\n<li>Preparing reconciliation reports;<\/li>\n\n\n\n<li>Accounting for the payroll expense;<\/li>\n\n\n\n<li>Filing payroll tax returns.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2\"><span id=\"how-to-calculate-payroll-taxes\"><strong>How to <\/strong><strong>calculate<\/strong><strong> <\/strong><strong>payroll taxes<\/strong><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The fullest pack of payroll taxes in the United States normally includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Federal Insurance Contributions Act (FICA)\n<ul class=\"wp-block-list\">\n<li>Social Security;<\/li>\n\n\n\n<li>Medicare taxes;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Federal Unemployment Taxes (FUTA);<\/li>\n\n\n\n<li>State Unemployment Taxes (SUTA);<\/li>\n\n\n\n<li>Income tax (federal\/state).<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Note:<\/em><\/strong> The rate of unemployment insurance the employer will pay varies by industry, state, and federal fees.<strong> <\/strong><strong>Keep in mind that it\u2019s better to turn to a professional CPA for&nbsp; tax advice if you want to be certain that everything is fine.<\/strong>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3\"><span id=\"federal-insurance-contributions-act-fica\"><strong>Federal Insurance Contributions Act (FICA)<\/strong><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">FICA is used to fund Social Security and Medicare, two of the most important safety net programs in the United States. This tax is shared by both employers and employees. Employers are required to withhold a certain percentage of each payroll check that they issue, as well as pay a matching amount.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FICA also applies to self-employed individuals. The <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/self-employment-tax-social-security-and-medicare-taxes\" target=\"_blank\" rel=\"nofollow noreferrer noopener\">self-employment tax rate<\/a> is 15.3%. The rate is made up of two percentages: 12.4% for Social Security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For <a href=\"https:\/\/tax.thomsonreuters.com\/news\/2023-social-security-wage-base-increases-to-160200\/\" target=\"_blank\" rel=\"nofollow noreferrer noopener\">2023<\/a>, the FICA tax rate for both employers and employees is 7.65% (6.2% for OASDI and 1.45% for Medicare), therefore for this payroll year, an employer must withhold:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>6.2% Social Security tax on the first $160,200 of employee wages (maximum tax is $9,932.40; i.e., 6.20% \u00d7 $160,200);<\/li>\n\n\n\n<li>1.45% Medicare tax on the first $200,000 of employee wages;<\/li>\n\n\n\n<li>2.35% Medicare tax (regular 1.45% Medicare tax + 0.9% additional Medicare tax) on all employee wages in excess of $200,000.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4\"><span id=\"federal-unemployment-taxes-futa\"><strong>Federal Unemployment Taxes (FUTA)<\/strong><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">FUTA is a type of payroll tax that is paid by employers and is used to fund state unemployment benefits for those who become unemployed due to no fault of their own. It\u2019s a tax imposed by the federal government, and it\u2019s typically paid by the employer each quarter.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The<a rel=\"nofollow noreferrer noopener\" href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/futa-credit-reduction\" target=\"_blank\"> FUTA tax rate<\/a> is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year. The $7,000 is often referred to as the federal or FUTA wage base. Your state wage base may be different based on the respective state\u2019s rules (filled in <a href=\"https:\/\/www.irs.gov\/filing\/where-to-file-your-taxes-for-form-940\" target=\"_blank\" rel=\"noreferrer noopener\">Form 940<\/a>).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"5\"><span id=\"state-unemployment-taxes-suta\"><strong>State Unemployment Taxes (SUTA)<\/strong><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Similar to the FUTA, State Unemployment Taxes (SUTA) is a payroll tax which is imposed on employers in order to finance state unemployment compensation programs. It\u2019s used to pay unemployment benefits to individuals who have been laid off from their job due to no fault of their own. SUTA taxes are paid by employers and their <a href=\"https:\/\/www.firstnonprofit.com\/suta-state-unemployment-tax-2023-cost-changes\/\" target=\"_blank\" rel=\"nofollow noreferrer noopener\">rate varies from state to state<\/a>&nbsp; depending on&nbsp; the number of employees a business has and the amount of wages paid to employees.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In most states, employers are required to pay SUTA taxes quarterly or annually. <strong>Since different jurisdictions have unique requirements for payroll taxes, it\u2019s better to double check everything with a tax professional.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"6\"><span id=\"income-taxes\"><strong>Income taxes<\/strong><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Income tax is calculated based on the taxable income of an individual or organization. It\u2019s a progressive tax, meaning that those who earn more are taxed at higher rates.<\/p>\n\n\n\n<h4 id=\"federal-income-tax\" class=\"wp-block-heading\"><strong>Federal Income<\/strong><strong> Tax<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Federal Income Tax is an employer&#8217;s tax and is withheld by employers on behalf of employees. They\u2019re paid quarterly to the federal government. The amount of Federal Income Tax depends on a number of factors and is determined according to the information provided on the employee <a rel=\"nofollow noreferrer noopener\" href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-w-4\" target=\"_blank\">W-4 form<\/a>.&nbsp;<\/p>\n\n\n\n<h4 id=\"state-income-tax\" class=\"wp-block-heading\"><strong>State <\/strong><strong>Income Tax<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">State income taxes are a major source of revenue for state governments, with most states collecting them to fund public services such as education, public safety, and healthcare. The amount of taxes collected from individuals and businesses within a state depends on the specific state tax laws. For example, some states have a flat tax rate for all residents, while others may have progressive tax rates based on income levels.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">States that don\u2019t have income taxes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Alaska;<\/li>\n\n\n\n<li>Florida;<\/li>\n\n\n\n<li>New Hampshire;<\/li>\n\n\n\n<li>Nevada;<\/li>\n\n\n\n<li>South Dakota;<\/li>\n\n\n\n<li>Tennessee;<\/li>\n\n\n\n<li>Texas;<\/li>\n\n\n\n<li>Washington;<\/li>\n\n\n\n<li>Wyoming.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><em>To learn more about income taxes check our blog \u2192 <a href=\"https:\/\/synder.com\/blog\/how-to-file-income-tax\/\">Click here<\/a>.&nbsp;<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"7\"><span id=\"voluntary-payroll-deductions\"><strong>Voluntary payroll deductions<\/strong><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Voluntary payroll deductions are an increasingly popular way for companies to provide employees with the opportunity to save for their future. Through voluntary payroll deduction, employees are able to set aside a portion of their wages each pay period in order to save for retirement or other expenses.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The process for setting up voluntary payroll deductions is relatively simple. Employees choose the amount they\u2019d like to set aside each pay period. The employer then deducts the amount from the employee&#8217;s wages and deposits it in the designated account. This amount is then subtracted from the employee&#8217;s taxable wages, resulting in a reduction in the employee&#8217;s payroll tax.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Voluntary payroll deductions can include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Health insurance premiums, such as medical, dental, and eye care;<\/li>\n\n\n\n<li>Life insurance premiums;<\/li>\n\n\n\n<li>Retirement plan contributions;<\/li>\n\n\n\n<li>Employee stock purchase plans, such as ESPP and ESOP plans;<\/li>\n\n\n\n<li>Meals, uniforms, union dues, and other job-related expenses.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>To be certain about each payroll deduction, consult a professional.&nbsp;<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"8\"><span id=\"payroll-tax-process-steps\"><strong>Payroll tax<\/strong><strong> process steps<\/strong><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Now, when we\u2019ve described all the components and shown the main rates, let\u2019s go through the main steps of payroll tax filing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Keep in mind that when dealing with payroll taxes (or any taxes) it\u2019s better to seek expert advice from a tax professional who can advise on your own specific circumstances. The requirements and conditions might be different for each jurisdiction.<\/strong><\/p>\n\n\n\n<h3 id=\"1-calculate-the-gross-pay\" class=\"wp-block-heading\"><strong>#1. Calculate the <\/strong><strong>gross pay<\/strong><strong>&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The first step in the payroll tax process is to determine the employee\u2019s gross pay. This includes all wages, salaries, commissions, bonuses, and other forms of remuneration. This calculation will determine the amount of taxes that are due from the employee.<\/p>\n\n\n\n<h3 id=\"gross-pay-employees-hourly-rate-x-hours-worked\" class=\"wp-block-heading\"><strong><em>Gross pay = Employee\u2019s hourly rate \u00d7 Hours worked<\/em><\/strong><\/h3>\n\n\n\n<h3 id=\"2-deduct-income-tax-and-the-amount-for-fica\" class=\"wp-block-heading\"><strong>#2. Deduct income tax and the amount for FICA<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After the gross pay is calculated, the employer must then deduct any applicable taxes from the employee\u2019s wages based on the W-4 form the employee has completed. This includes state and federal income taxes, Social Security and Medicare taxes, and any other applicable taxes. If you\u2019re hiring employees, you can use an <a href=\"https:\/\/www.formpros.com\/tax-forms\/form-w-2\/\">online W-2<\/a> to calculate these taxes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Note: <\/em><\/strong>The IRS provides an Income Tax Withholding Assistant to help determine how much tax you need to withhold and report as an employer.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Aside from the employees\u2019 amount for FICA taxes, you, as a business owner, have to calculate the amount you need to pay from your side and set aside those amounts.&nbsp;<\/p>\n\n\n\n<h3 id=\"3-make-payments-to-the-irs\" class=\"wp-block-heading\"><strong>#3. Make payments to the IRS<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019re obligated to make payments to the IRS either monthly or semi-weekly, based on the total size of your employee payroll. The employer must ensure that all taxes are paid in full and on time in order to avoid any potential penalties or interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can pay the taxes online using the Electronic Federal Tax Payment System (EFTPS). State payroll taxes, when applicable, are usually submitted via the state\u2019s own electronic or manual systems.&nbsp;<\/p>\n\n\n\n<h3 id=\"4-report-payroll-taxes\" class=\"wp-block-heading\"><strong>#4. Report <\/strong><strong>payroll taxes<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Employers must then report payroll taxes to the proper taxing authorities. This includes filing an Employer&#8217;s Quarterly Federal Tax Return (<a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-941\" target=\"_blank\" rel=\"nofollow noreferrer noopener\">Form 941<\/a>) to the IRS, reporting the employee wages to the Social Security Administration (<a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-w-2\" target=\"_blank\" rel=\"nofollow noreferrer noopener\">Form W-2<\/a>, <a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-w-3\" target=\"_blank\" rel=\"nofollow noreferrer noopener\">Form W-3<\/a>), and submitting state income tax withholding to the state&#8217;s taxing authority.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Payroll tax reporting can be done manually, with the help of <a href=\"https:\/\/peoplemanagingpeople.com\/tools\/best-hr-software-for-payroll\/\" target=\"_blank\" rel=\"noreferrer noopener\">HR payroll software<\/a> or with the help of an accountant.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Note:<\/em><\/strong> You can report payroll taxes through <a href=\"https:\/\/www.irs.gov\/businesses\/e-file-employment-tax-forms\" target=\"_blank\" rel=\"nofollow noreferrer noopener\">E-file<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Overall, the payroll tax process is an important part of any business and employers need to ensure that they\u2019re accurately and promptly reporting and paying payroll taxes. Failing to comply with payroll tax requirements can result in fines and penalties (we\u2019ll talk about them a bit later), so businesses must understand their payroll tax obligations and take the necessary steps to ensure compliance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"9\"><span id=\"2023-payroll-taxes-due-dates-for-an-employer\"><strong>2023<\/strong><strong> payroll taxes<\/strong><strong> due dates for an <\/strong><strong>employer<\/strong><strong>&nbsp;<\/strong><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Even though it\u2019s already February and the first month of 2023 is over, we\u2019ll provide you with a full calendar of the important dates for payroll tax filing. Since they mostly stay the same, it\u2019ll help you to be prepared for the next round of payroll tax filing in 2024.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table ticss-dd4c0c03 is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Deadline<\/strong><\/td><td><strong>What\u2019s due<\/strong><\/td><\/tr><tr><td><strong>January 17<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for December&nbsp;(<em>they\u2019re paid either monthly or semi-weekly: all new employers start out as monthly depositors<\/em>)<\/td><\/tr><tr><td><strong>January 31<\/strong><\/td><td>\u2013 Employer\u2019s Quarterly Tax Return (Form 941)<br><br>\u2013 Employer\u2019s Annual Federal Unemployment Tax Return (Form 940)<br>\u2013 Annual wage reporting for employees (Form W-2 and W-3)<\/td><\/tr><tr><td><strong>February 15<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for January<\/td><\/tr><tr><td><strong>March 15<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for February<\/td><\/tr><tr><td><strong>April 18<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for March<\/td><\/tr><tr><td><strong>May 1<\/strong><\/td><td>\u2013 Quarterly Federal Tax (Form 941)<br>\u2013 Quarterly FUTA tax deposits <em>(may be due for the first quarter ending March 31, 2023)<\/em><\/td><\/tr><tr><td><strong>May 15<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for April<\/td><\/tr><tr><td><strong>June 15<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for May<\/td><\/tr><tr><td><strong>July 17<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for June<\/td><\/tr><tr><td><strong>July 31<\/strong><\/td><td>\u2013 Quarterly Federal Tax (Form 941)<br>\u2013 Quarterly FUTA tax deposits <em>(may be due for the first quarter ending June 30, 2023)<\/em><\/td><\/tr><tr><td><strong>August 15<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for July<\/td><\/tr><tr><td><strong>September 15<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for August<\/td><\/tr><tr><td><strong>October 16<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for September<\/td><\/tr><tr><td><strong>October 31<\/strong><\/td><td>\u2013 Quarterly Federal Tax (Form 941)<br>\u2013 Quarterly FUTA tax deposits <em>(may be due for the first quarter ending September 30, 2023)<\/em><\/td><\/tr><tr><td><strong>November 15<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for October<\/td><\/tr><tr><td><strong>December 15<\/strong><\/td><td>\u2013 monthly payroll tax payments: deposit for November<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Keep in mind that missing the due date means you\u2019ll need to pay a penalty, in which case you\u2019ll receive a notice from the IRS. Generally, payroll tax penalties are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>1 to 5 days: 2% of unpaid amount;<\/li>\n\n\n\n<li>6 to 15 days: 5% of unpaid amount;<\/li>\n\n\n\n<li>More than 15 days: 10% of unpaid amount;<\/li>\n\n\n\n<li>More than 10 days after your first notice: 15% of unpaid amount.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Interested in Taxes? Learn more about <a href=\"https:\/\/synder.com\/blog\/how-to-calculate-tax-revenue-a-quick-overview-of-tax-revenue-calculation\/\">Tax Revenue for your Business<\/a>.<\/p>\n\n\n\n<h2 id=\"bottom-line\" class=\"wp-block-heading\"><strong>Bottom line<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Payroll taxes are a huge part of running a successful business. Knowing when, where and how to pay these taxes is important for businesses of all sizes.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Payroll taxes are often complicated and confusing, so businesses need to understand the rules and regulations. Knowing the tax rate, filing deadlines, and withholding requirements are just a few of the important things to know about payroll taxes. By familiarizing yourself with the basics of payroll taxes, employers can ensure that they are compliant and avoid costly mistakes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>This article serves as a brief overview of the existing payroll taxes to assist small businesses who are looking to learn more about the payroll tax. It doesn\u2019t intend to provide full information on the legal questions related to payroll tax. If you have additional questions, please consult a tax or legal professional in your area.<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"This article will explain the various payroll taxes imposed on employers and how they are calculated.\n","protected":false},"author":88,"featured_media":11319,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":"","_ppma_block_editor_authors":""},"categories":[43,333,265],"tags":[255,244],"ppma_author":[389],"class_list":["post-4003","post","type-post","status-publish","format-standard","has-post-thumbnail","category-accounting","category-hiring-and-managing-employees","category-payroll","tag-business-owner","tag-tax-season","cs-entry","cs-video-wrap"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Calculate Employer Payroll Taxes: How Is Payroll Tax Calculated?<\/title>\n<meta name=\"description\" content=\"This article will explain the various payroll taxes imposed on employers and how they are calculated.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Calculate Employer Payroll Taxes: How Is Payroll Tax Calculated?\" \/>\n<meta property=\"og:description\" content=\"This article will explain the various payroll taxes imposed on employers and how they are calculated.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/\" \/>\n<meta property=\"og:site_name\" content=\"Synder blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/SynderHQ\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-13T05:47:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-14T09:54:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2023\/02\/payroll-tax-basics-every-employer-needs-to-know.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"371\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Anastasia Su\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Anastasia Su\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"10 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Calculate Employer Payroll Taxes: How Is Payroll Tax Calculated?","description":"This article will explain the various payroll taxes imposed on employers and how they are calculated.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/","og_locale":"en_US","og_type":"article","og_title":"Calculate Employer Payroll Taxes: How Is Payroll Tax Calculated?","og_description":"This article will explain the various payroll taxes imposed on employers and how they are calculated.","og_url":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/","og_site_name":"Synder blog","article_publisher":"https:\/\/www.facebook.com\/SynderHQ\/","article_published_time":"2023-02-13T05:47:00+00:00","article_modified_time":"2024-11-14T09:54:44+00:00","og_image":[{"width":1200,"height":371,"url":"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2023\/02\/payroll-tax-basics-every-employer-needs-to-know.jpg","type":"image\/jpeg"}],"author":"Anastasia Su","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Anastasia Su","Est. reading time":"10 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/#article","isPartOf":{"@id":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/"},"author":{"name":"Anastasia Su","@id":"https:\/\/synder.com\/blog\/#\/schema\/person\/73e5b5df8afb165b6b738b397bfaede0"},"headline":"Payroll Taxes for an Employer: How Is Payroll Tax Calculated?","datePublished":"2023-02-13T05:47:00+00:00","dateModified":"2024-11-14T09:54:44+00:00","mainEntityOfPage":{"@id":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/"},"wordCount":2181,"commentCount":0,"publisher":{"@id":"https:\/\/synder.com\/blog\/#organization"},"image":{"@id":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2023\/02\/payroll-tax-basics-every-employer-needs-to-know.jpg","keywords":["Business Owner","Tax season"],"articleSection":["Accounting","Hiring and Managing Employees","Payroll"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/","url":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/","name":"Calculate Employer Payroll Taxes: How Is Payroll Tax Calculated?","isPartOf":{"@id":"https:\/\/synder.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/#primaryimage"},"image":{"@id":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2023\/02\/payroll-tax-basics-every-employer-needs-to-know.jpg","datePublished":"2023-02-13T05:47:00+00:00","dateModified":"2024-11-14T09:54:44+00:00","description":"This article will explain the various payroll taxes imposed on employers and how they are calculated.","breadcrumb":{"@id":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/#primaryimage","url":"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2023\/02\/payroll-tax-basics-every-employer-needs-to-know.jpg","contentUrl":"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2023\/02\/payroll-tax-basics-every-employer-needs-to-know.jpg","width":1200,"height":371,"caption":"Payroll Taxes for an Employer: How Is Payroll Tax Calculated?"},{"@type":"BreadcrumbList","@id":"https:\/\/synder.com\/blog\/payroll-tax-basics-every-employer-needs-to-know\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/synder.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Accounting","item":"https:\/\/synder.com\/blog\/category\/accounting\/"},{"@type":"ListItem","position":3,"name":"Payroll Taxes for an Employer: How Is Payroll Tax Calculated?"}]},{"@type":"WebSite","@id":"https:\/\/synder.com\/blog\/#website","url":"https:\/\/synder.com\/blog\/","name":"Synder blog","description":"Business Hacks &amp; Accounting Automation Use Cases","publisher":{"@id":"https:\/\/synder.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/synder.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/synder.com\/blog\/#organization","name":"Synder","url":"https:\/\/synder.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/synder.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2024\/07\/LOG.svg","contentUrl":"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2024\/07\/LOG.svg","width":303,"height":332,"caption":"Synder"},"image":{"@id":"https:\/\/synder.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/SynderHQ\/"]},{"@type":"Person","@id":"https:\/\/synder.com\/blog\/#\/schema\/person\/73e5b5df8afb165b6b738b397bfaede0","name":"Anastasia Su","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2022\/05\/anastasiya.sudilovskaya-1-110x110.jpeg4c6977e9d895dc1beaf93bfa859adda5","url":"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2022\/05\/anastasiya.sudilovskaya-1-110x110.jpeg","contentUrl":"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2022\/05\/anastasiya.sudilovskaya-1-110x110.jpeg","caption":"Anastasia Su"},"description":"Anastasia is the Head of Content at Synder, a G2, GetApp &amp; Software Advice high-performer for the past 5 years. With years of hands-on experience working alongside accountants and business owners, she leads Synder\u2019s content strategy that addresses real-world accounting challenges. Through Synder\u2019s in-house accounting training, Anastasia built solid expertise in multi-platform data sync and automation across QuickBooks, Xero, Sage Intacct, and NetSuite. Her work bridges user insights and accounting logic, helping businesses optimize their financial operations.","sameAs":["https:\/\/www.linkedin.com\/in\/anastasia-su-8006a1219\/"],"url":"https:\/\/synder.com\/blog\/author\/anastasiyasudilovskaya\/"}]}},"authors":[{"term_id":389,"user_id":88,"is_guest":0,"slug":"anastasiyasudilovskaya","display_name":"Anastasia Su","avatar_url":"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2022\/05\/anastasiya.sudilovskaya-1-110x110.jpeg","avatar_alt":"","avatar_decorative":"","author_category":"","first_name":"Anastasia","last_name":"Sudilovskaja","user_url":"","job_title":"","description":"Anastasia is a FinTech professional who blends her marketing and customer support expertise at Synder, a G2, GetApp &amp; Software Advice high-performer for the past 5 years. As a content creator and Synder specialist, she focuses on integrations between accounting software such as QuickBooks and Xero, and various payment platforms and online marketplaces, including Stripe, Shopify, and Amazon. Passionate about AI development, she\u2019s constantly on the lookout for new AI software solutions to analyze how they impact the aspects of the business world."}],"_links":{"self":[{"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/posts\/4003","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/users\/88"}],"replies":[{"embeddable":true,"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/comments?post=4003"}],"version-history":[{"count":1,"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/posts\/4003\/revisions"}],"predecessor-version":[{"id":28179,"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/posts\/4003\/revisions\/28179"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/media\/11319"}],"wp:attachment":[{"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/media?parent=4003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/categories?post=4003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/tags?post=4003"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/synder.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=4003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}