Payroll services in Madison, WI, are offered by firms like KMA Bodilly, and they consist of everything related to classifying workers’ legal status, deducting proper amounts of taxes and paying workers on time. There are many other responsibilities included under the broader scope of payroll services in Madison, WI, making the activity much more difficult than what people usually think. Here are three things that every employer needs to know about, no matter what businesses they’re in.
There Are Several Taxes That Need to Be Withheld
The United States government isn’t very fond of businesses, individuals and organizations that fail to file returns or pay taxes. Employers have to pay a few types of taxes, more than individuals do, and each one is important to remember. FICA, or the Federal Insurance Contribution Act, taxes come in the amount of 7.65% and are payable by the employer. Local, state, and federal tax withholdings are also required, not to mention an additional Medicare tax of 0.9% for people earning upwards of $200,000.
Adhering to Government Orders for Garnishments
In the case of child support and back taxes, for example, the government sometimes pulls money to pay for each of them directly out of workers’ paychecks. Employers are ultimately responsible for paying these out to relevant government agencies. Failing to do this might be an honest mistake, but it will still result in a fine. This is yet another reason why opting to solicit help from an organization like KMA Bodilly is such a good idea.
Not All Workers Are Employees
Employees are given W-2 forms from employers each year before tax season starts. They also have part of their taxes paid to the government by the employer. Independent contractors and other non-employees get 1099 forms and pay more taxes than employees. Failing to pay the right amount of taxes, file the right end-of-year IRS forms or both can cause serious issues with the Internal Revenue Service.
For more updates, follow us on Facebook.
