As an employer, you’re responsible for paying several payroll-related taxes in addition to collecting and remitting employee withholdings. These taxes help fund federal and state programs that support your workforce.
Overview of Employer-Paid Taxes:
Social Security Tax (SS)
Employers are required to match the Social Security tax withheld from employee paychecks. This tax funds the federal Social Security program, which provides retirement and disability benefits.
Federal Unemployment Tax (FUTA)
FUTA is a federal tax that supports unemployment benefit programs. It is paid solely by the employer and is not withheld from employees’ pay.
State Unemployment Tax (SUTA)
SUTA taxes fund each state’s unemployment insurance program. Like FUTA, this is an employer-only tax and varies based on your business’s location and payroll history.
Federal Income Tax (FIT) Remittance
While employers do not pay this tax themselves, they are responsible for withholding federal income tax from employees’ paychecks and remitting it to the IRS.
Applicable Local Employer Taxes
In some regions, employers may also be required to pay local payroll taxes. These obligations depend on your business’s location and local tax laws.
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