Jack's Firewood
FORM 941
FICA TAXES
TAX CALENDER
UNEMPLOYMENT TAXES
REQUIREMENTS
As an employer, I must withhold specific taxes from my employees' paychecks.
The specific taxes I must withhold include federal income tax, social security tax, and Medicare tax.
I'm also responsible for paying liability for the employer share of both social security and Medicare taxes.
QUARTERLY REPORTS
Salaries I've paid as an employer.
Federal income tax.
Employer and employee share of social security and Medicare taxes.
AVOID PENALTIES!
Complete Form 941 in time to avoid penalties and interest!
Report Form 941 as accurately as possible!
Issue Forms W-2 to employees!
EXCEPTIONS?
Seasonal employers don't need to file a Form 941 since they've paid no salaries.
Employers of household employees don't need to file a Form 941.
Employers of farm employees don't need to file a Form 941 for farm work.
JANUARY
FEBRUARY
BENEFITS!
QUARTERLY ACTIONS
FUTA
DEPOSITING TAXES
TESTS
CALCULATION
Payments are provided to workers who lost their occupations.
FUTA controls the states and federal government in operating the unemployment tax program.
States create the employment insurance systems, and the federal government ratifies the laws and pays the cost of the programs created by the states.
I must figure FUTA taxes quarterly for depositing reasons.
I have to deposit my FUTA tax if my FUTA tax liability is more than $500.
I should stop depositing FUTA tax on my employees' wages when they hit $7,000 in taxable wages for the year.
General test: I'm subject to FUTA tax on my employees' wages who aren't household or farm workers if I paid wages more than $1,500 in any quarter.
Household employees test: I'm subject to FUTA tax if I paid more than $1,000 to household employees in any quarter.
Farmworkers test: I'm subject to FUTA tax on the wages of farmworkers if I paid wages more than $20,000 to farmworkers during any quarter.
The current FUTA tax rate is 6%.
FUTA tax is figured based on the first $7,000 in paid wages to all employees during the year.
I can take a tax credit of 5.4% for the amounts I paid into unemployment funds by the state, which results in a net tax rate of .6%.
FICA
FICA provides for older people, the disabled, and hospital insurance.
The social security tax funds insurance for the disabled and older people.
The Medicare tax funds the hospital insurance section.
EMPLOYER CRITERIA
Also, I must pay a matching amount subject to both social security and Medicare taxes.
I don't have to withhold any more social security taxes once the wages I paid have reached the social security credit limit.
As an employer, I'm responsible for withholding my employees' social security and Medicare taxes.
ADDITIONAL WITHHOLDING
As an employer, I'm responsible for withholding additional employee Medicare tax.
This tax rate begins when wages paid to an employee go beyond a specific amount.
However, as an employer, I have no employer share of additional Medicare tax.
RATES, LIMIT
The current social security tax rate is 6.2% for both me, the employer, and my employees.
The current Medicare tax rate is 1.45% for both me and my employees.
The social security tax has a wage base limit, and it's the maximum wage subject to the annual tax; however, Medicare has no wage base limit.
I know when to deposit taxes!
I never have to be charged penalties and interest for forgetting to file forms and taxes!
I know the due dates of filing forms!
By January 31st, I must file Form 941 for the fourth quarter of the prior year.
Also, by January 31st, I may have to file Form 940 to report any FUTA tax.
Another form to file by January 31st is Form W-2 to report the employees' income and taxes withheld from the employer.
By February 15th, I should request a new Form W-4 from employees who are exempt from income tax withholding the previous year.
On February 16th, any Form W-4 claiming exemption from the prior year has expired.
By February 28th, an employer must file Form 8027 to report tips.
I may have to deposit FUTA taxes for each quarter.
The quarterly due dates are April 30th, July 31st, October 31st, and January 31st.
Employers must file Form 941 each quarter to report social security and Medicare taxes withheld from the employees' paychecks.