Who pays the payroll taxes? Technically, both you and your employees do. Most of the money does come from a percentage of your employees’ salaries. You, however, are responsible for making sure that this percentage gets deducted. Some payroll taxes don’t get deducted at all but are paid by employers instead. Running your own business means checking off a lot of different boxes. You have to make sure that you handle each tax item correctly if you want to avoid trouble with the IRS. When working on your business taxes, make sure you keep these important things in mind.

How Do I Determine My Business Taxes?

As an employer, you’ll have to deduct business taxes for Social Security, Medicare, and income taxes, among a few other things. You’ll determine which taxes you should withhold based on the W4 form that your employees should have filled out. All of your employees, whether business or household employees, should fill out a W4 form. The information that your employees provide, combined with your knowledge of their salaries, will help you figure out how much money you need to deduct for your payroll business taxes.

Remember State and Local Taxes

Most employers grasp the idea of federal business taxes fairly quickly, but don’t forget that states and smaller localities have their own payroll tax laws. Before the first payday arrives, check your state and local tax laws. A bit of research online should help you get started. Of course, adding state and local taxes into the mix makes your job as an employer much more complicated than it already is. However, a little complication on the front end will save you from a lot of headaches further down the road.

Balanced Business Taxes

Between federal, state, and local business taxes, keeping your business legal can be overwhelming and exhausting. Between the forms, the numbers, and the confusing language used by most tax resources, many employers are never completely sure that they’ve done their payroll taxes correctly. At Balanced Taxes, we’re here to make a complicated process simple. Whether your company is a sole proprietorship, a partnership, or an S-Corporation, we’ll help you take care of your taxes. You can breathe easy, knowing that an experienced and thorough tax expert is taking care of your needs. You, meanwhile, can go back to overseeing your creative vision for your business. Are you ready to simplify your business life? Contact us now to get started.