What Payroll Taxes Do Employers Pay?


By Todd Whalen - July 12, 2019

What is a Payroll Tax?

Payroll taxes are levied as a percentage of what employers pay their employees (or as a total percentage of a self-employed person's income). In the United States, payroll taxes are split evenly between employers and employees, with employers paying their percentages and employees seeing their percentages deducted from their paychecks. These taxes include both Medicare and Social Security, which fund programs to supply health coverage and monthly income in retirement. Because the employer payroll taxes are charged directly to the business, it is wise to budget for your hiring salaries and wages based on more than just the gross income of your employee. Rather, you'll need at least 7.65% more based on federal payroll taxes alone.


What Payroll Taxes do Employers Pay?

Employers are responsible for federal, state, and local payroll taxes, as applicable in the area where they are located. Federal employer payroll tax rates currently stand at 6.2% for Social Security and 1.45% for the employer for Medicare. For each of these categories, your employee pays the same percentage, to bring the total payroll taxes to 12.4% and 2.9%, respectively. There are also federal and state unemployment taxes paid by the employer. To read more about what payroll taxes employers pay, visit the IRS website.


How Much is Colorado Payroll Tax?

Colorado has its own employer payroll taxes as well, which are based on the wages of your employees and can change every few years. To keep track of your current obligations for Colorado payroll taxes, visit Colorado's tax website or contact Advanced Tax Solutions with your questions.

 

 

 

Advanced Tax Solutions Payroll Tax Help

Advanced Tax Solutions understands that payroll tax liabilities can be a bit confusing and require the assistance of a professional who can help you file quickly and accurately. The difficulty of payroll tax processing can lead to expensive IRS payroll tax penalties. Many time. there are ways to have the IRS abate some of these penalties. If you have unwanted IRS payroll tax debts or payroll tax penalties our experts can assist you.

If you need payroll tax help, reach out today to Advanced Tax Solutions! Our experienced Colorado payroll tax specialists can help you understand your payroll tax liabilities as an employer.
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