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how can i do employee tax for my employee by myself?

how can i do employee tax for my employee by myself?
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Answered in 20 minutes by:
7/27/2013
jgordosea
jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3,161
Experience: I've prepared all types of taxes since 1987.
Verified

Greetings,

 

Are you a sole proprietor (file Schedule C) and have an employee that you need to pay in FICA, Medicare, United States federal income tax?

Or do you have an entity (partnership, S corporation, etc)?

 

Is there also state income tax in you state you need to collect and send?

Have you registered for unemployment as an employer for your state (yet)?

 

Let us know what you need to do specifically and we can give detailed answers for how to do it.

Thank you.

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Customer reply replied 4 years ago

i have 2 employee, when i do pay employee tax, is it 20% on salary i paid them ? recently, tax service let me know i have to pay for empoyee tax is $625/month. total salary is 3,328/month/ 2 employee . is that correct? and what is 40% and 60% in payment for employee tax.

PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,711
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified
Welcome to the site. Different Expert here. Since your first Expert opted out, I can assist.

The payroll service appears to have given you a figure for the amount of cash needed for the payroll taxes, which should be around 12-18% of the total. In my state, payroll taxes will be 7.65% for Social Security and Medicare, another 5% for Federal and state unemployment, and any other items your payroll company charges as payroll taxes. 625/3328 = ~18.8%, so it's not way out of line.

I do not know of any 60-40 split for employee taxes. Payroll taxes are 50-50 for Social Security and Medicare, and you as employer are responsible for the Fed and state unemployment.

Sometimes the payroll service offers health insurance or other fringe benefits, which you might have agreed to pay 60% and the employees 40%. I would not consider that a payroll tax, though.

I hope that helps. Please advise if you need anything more, or leave positive feedback to close out the question. I'm PDtax.
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Customer reply replied 4 years ago

on payroll statement that tax service gave me, i realize my employee won't receive full payment cause they have to pay tax for themselves, is that correct? and what is it? for example: their salary is $600/month but they didnot recieve $600 but it will be 550 cause of payment for their medicare, federal, ss. so i wonder what is it? when i work for HEB, i never recieve full payment, my salary will be cut for tax for myself, what tax? is that employee tax?

Gross pay minus Federal withholding minus state withholding minus social security (6.2%) minus medicare ()1.45%) minus any other withholdings equals net pay for your employee.

As the employer, you owe a matching amount for social security (6.2%), medicare (1.45%), Federal and state unemployment insurance premiums (estimated at 5%, could be more or less). Those are what your payroll service will set up as payroll taxes.

When you receive a paycheck, you will be subject to the same withholdings from your pay, to get to net pay. Your company will also have to pay the payroll taxes on your pay.

I hope that clarifies things for you. Thanks again from Just Answer.
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,711
Experience: 35 years tax experience, including four years at a Big 4 firm.
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PDtax, Certified Public Accountant (CPA)
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