Payroll Reporting
Report the following payroll-related expenses:
- Employer's portion of Social Security and Medicare taxes
- FUTA (Federal Unemployment Tax)
- SUI (State Unemployment Insurance)
Under current law, employers and employees each pay 1/2 of the Social Security tax and 1/2 of the Medicare tax on employees' wages. The employer share of Social Security tax is 6.2% and the Medicare tax is 1.45%, for a total of 7.65%. The Social Security tax is payable up to the first $142,800 of wages; the Medicare tax does not have an upper limit and applies to all wages.
Federal unemployment tax is paid by the employer at the rate of 6.2% of employee wages (including corporate officers) on the first $7,000 of each employee's wages. The tax is paid quarterly to each state taxing authority as State Unemployment Insurance (SUI) and is actually an advance payment of the federal tax. Each state sets local rates based on various factors.
The federal unemployment tax applies to the first $7,000 of each employee's wages (including corporation officers). State unemployment amounts may vary from state to state.
