Bookkeeping All-In-One For Dummies

Chapter 4

Employer-Paid Taxes and Government Payroll Reporting

In This Chapter

Tallying up the employer’s share of Social Security and Medicare

Filing and paying unemployment taxes

Figuring out workers’ compensation

Keeping accurate employee records

You may think that employees will make your job as a business owner easier, but you’re wrong on that one. It’s really a mixed bag. Although employees help you keep your business operating and enable you to grow, they also add a lot of government paperwork.

After your company hires employees, you need to complete regular reports for the government regarding the taxes you must pay toward the employees’ Social Security and Medicare, as well as unemployment taxes. Most states require employers to buy workers’ compensation insurance based on employees’ salaries and wages. Some states do provide exemptions for small businesses or certain types of workers. Others do allow employers to self-insure. For more details about how this is handled in your state, go to www.cutcomp.com/depts.htm.

This chapter reviews the federal, state, and local government ...