As if personal taxes weren’t confusing enough, business and payroll taxes can be even more convoluted! If you are a business owner or you are in charge of a business’ finance, you may know first hand how intensive payroll taxes can be. To help you simplify the financial aspect of business, we discuss the advantages of seeking professional assistance with your payroll taxes.
Specs of Payroll Taxes
Did you know that payroll taxes accounted for 34% of federal revenue in 2014? Payroll taxes contribute to a massive bloc of federal revenue, and it is fueled by 3 separate taxes: Social Security tax, Medicare tax, and Federal Unemployment tax. Social Security tax and Medicare tax are paid by both employers and employees. Social security tax is levied at 12.4%, split evenly between employers and employees. Medicare tax is levied at 2.9%, also split evenly between employees and employers, but single filers earning more than $200,000 and married filers earning more than $250,000 are levied at 3.8%.
Federal Unemployment tax is paid by employers at a rate of .6% per the first $7,000 of an employee’s wages, up to $42 per worker per year. Each state then collects an additional unemployment payroll tax to further finance unemployment insurance and benefit programs.
Does all this talk of taxes leave your head spinning? Turn to Fort Worth’s top CPA for payroll tax assistance and professional bookkeeping! Call Don Walker today at 817-905-1040!