Business Taxes

[aravindreddy845]

I have recently opened an LLC and have 4 payrolls. I am paying close to $2500 in employer taxes (SSA, Medicare, FUTA, TX FUTA) every month for these 4 payrolls together. For this fiscal year I will be paying approximately $30000 in employer taxes for these 4 payrolls. will I get a portion of this taxes I paid back if I have expenses related to my business? Thanks 

[leeloo]

No, the employer taxes you mentioned are not treated the same way as Federal Income Tax. With Federal taxes, it is a pay as you go system and at the end of the year, you may have paid in too much or too little. Then there is a reconciliation. With employer taxes, you are calculating the amount you owe and paying it down to the penny in some cases. There is no refund unless you make a mistake. 

[AliciaP1 · Accepted solution]

No, you do not get any portion of the taxes back, but the employer portion of the payroll taxes are an expense to your business as well as the salary or wages.  One-half of the SSA and Medicare you have paid to the treasury are the employer taxes while the other half is deducted from the employees' gross salary/wages.  The FUTA (federal unemployment tax) is an employer expense, but since this is usually an annual payment, it is an expense in the year it is paid.  For instance, 2022 FUTA is due 01/31/23 and if it was paid 01/20/23 then it is a 2023 expense.  Your TX unemployment taxes are also employer expenses and are deductible.