Properly calculating payroll taxes for employees is essential to ensure accurate withholding and compliance with tax laws. We ensure that all required federal and state taxes—such as Social Security, Medicare, federal income tax, and state income tax—are accurately calculated and withheld from your employees' paychecks. Additionally, we assist with the withholding of local taxes and other specialized payroll-related deductions.

Businesses are required to file quarterly and annual payroll tax returns to report taxes withheld and pay the amounts owed to the IRS and state tax authorities. We handle the preparation and timely filing of your Form 941 (Quarterly Federal Tax Return) and Form 940 (Annual Federal Unemployment Tax Return), as well as any applicable state filings. We also ensure that all tax forms are filed accurately to avoid penalties for late or incorrect submissions.

Payroll taxes must be deposited regularly, either semi-weekly or monthly, depending on your business’s tax liability. We ensure that your payroll taxes are deposited in a timely manner, avoiding any late deposit penalties. We also provide detailed guidance on determining the correct deposit schedule for your business based on your total payroll tax liability.

Payroll tax regulations vary by state and locality. Each state has its own rules for income tax withholding, unemployment insurance, and other payroll-related taxes. We help you navigate these differences, ensuring compliance with all local tax jurisdictions, including submitting state-specific tax forms and payments. We also help businesses operating in multiple states to manage multi-state payroll tax filings.

At the end of each year, employers are required to provide employees with Form W-2 (Wage and Tax Statement) and submit a copy to the Social Security Administration (SSA). We manage the preparation of these forms, ensuring that they are completed accurately and delivered to your employees on time. We also handle Form 1099 filings for independent contractors, ensuring that non-employee compensation is reported correctly to the IRS.

One of the most common payroll-related issues businesses face is classifying workers as employees or independent contractors. Misclassifying workers can result in substantial penalties. Our payroll tax services include advising on proper worker classification and ensuring that all applicable taxes are withheld and reported accordingly. We ensure that your business is following IRS guidelines on employee versus contractor status.