You can deduct the employer's share of payroll taxes (employment taxes) on your business tax return. Do not deduct the employee's share of these taxes, only deduct the portion you are responsible for paying. If you are entering your payroll tax expense, only enter the employer's portion as a business expense, don't include what you withheld from your employees as an expense.
Employers must deposit and report federal employment taxes. Some of these taxes are paid by both the employer and the employee, while others are paid by the employer. Examples include federal income tax, Social Security tax, Medicare tax and federal unemployment tax.
Generally, employers must report wages, tips and other compensation paid to an employee by filing the required employment tax returns to the IRS. You must report employment taxes by filing one or more of the following tax returns:
You must file employment tax returns by set deadlines. In most cases, you can e-file employment tax returns.
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