Events Archive

Careers
Submit RFP
Client Center

Contact
Careers
Client Center

Call Us

888-387-6851

Technology Services Helpdesk

800-455-5676
Accounting Services

Featured Content

James Moore Announces July 2025 Firm-Wide Promotions

What to Expect from James Moore’s Nonprofit Audit Readiness Service

How to Create a Job Cost Report in Construction That Actually Helps You Control Costs

Accounting & Controllership

Business Accounting Services

Outsourced Accounting

SBIR Grant Accounting & Consulting

Assurance

Agreed-Upon Procedures

Audit, Reviews & Compilations

NCAA Agreed-Upon Procedures

Business Advisory

Collegiate Athletics Advisory Services

Fractional CFO Services

Revenue Cycle Enhancement

Transition Planning

Tax

Business Tax Services

Estate Planning Services

Individual Tax

International Tax Advisors

Nonprofit Tax

R&D Tax Credit Services

State & Local Tax (SALT) Services
Advisory

Featured Content

James Moore Announces July 2025 Firm-Wide Promotions

What to Expect from James Moore’s Nonprofit Audit Readiness Service

How to Create a Job Cost Report in Construction That Actually Helps You Control Costs

Digital

ARENA

Collegiate Athletics Data Analytics

HR Solutions

ACA Compliance

HR 101

HR Consulting

Outsourced HR

Technology Services

Cloud Solutions

Data Protection

Managed IT Services

Office 365 Migration

Security

Technology Planning
Industry

Featured Content

James Moore Announces July 2025 Firm-Wide Promotions

What to Expect from James Moore’s Nonprofit Audit Readiness Service

How to Create a Job Cost Report in Construction That Actually Helps You Control Costs

Construction

Government

State Government

Healthcare

Dental CPAs

Private and Group Physician Practices

Higher Education

Collegiate Athletics

Manufacturing

Nonprofit

Federally Qualified Health Centers

Head Start / Community Action Agency Services

Public Broadcasting

Real Estate

Developers
Funds
Investors

Technology
Insights

Featured Content

James Moore Announces July 2025 Firm-Wide Promotions

What to Expect from James Moore’s Nonprofit Audit Readiness Service

Articles

Webinars

Whitepapers

Video & Podcast Gallery

2024-25 Tax Planning Guide
About Us

Featured Content

James Moore Announces July 2025 Firm-Wide Promotions

What to Expect from James Moore’s Nonprofit Audit Readiness Service

How to Create a Job Cost Report in Construction That Actually Helps You Control Costs

Who We Are

Our Team

News

Events

Locations
Contact

Type your search here...

An all-in-one guide to paying federal and state payroll taxes in the U.S.

As you’ve probably learned by now, taxes are an inevitable part of doing business in the United States. While most focus generally lies on federal and state income taxes, there’s also a third aspect—payroll taxes.

What are payroll taxes?

Payroll taxes are taxes on an employee’s gross salary. The revenues from payroll taxes are used to fund public programs; as such, the funds collected go directly to those programs instead of the Internal Revenue Service (IRS).

Even if you’re self-employed with no additional employees, you’re still required to remit payroll taxes on your own salary.

There are 3 categories of federal payroll taxes:

- Social Security. This tax funds the federal retirement program for U.S. citizens. The rate is currently 12.4% of gross wages up to $160,200/year (as of 2023).

- Medicare. This program provides federal insurance for citizens aged 65 and over, as well as younger people with certain disabilities. This tax is currently taken out at 2.9% of gross wages (with no wage maximum). Note that there is an additional 0.9% tax for high-income earners—married taxpayers who make over $250,000 or single taxpayers making over $200,000. There is no employer match for this added tax.
- Federal Unemployment Tax Act (FUTA). Revenues from this tax go toward federal and state unemployment funds to help workers who have lost their jobs. The rate is 6% of the first $7,000/year of gross wages. However, businesses that pay this tax fully and on time receive a 5.4% credit, which lowers their FUTA tax responsibility to 0.6%.

These taxes are listed on an employee’s pay stub, with the first two shown as FICA (Federal Insurance Contributions Act).

As an employer, you’re responsible for half of the FICA tax amounts for each employee. The remaining half comes from the employees themselves.

If you’re self-employed, however, you’ll need to pay the full 15.3% of FICA taxes due on your salary. FUTA taxes are paid entirely by the employer; there is no employee payment.

How are federal payroll taxes paid?

How your federal payroll taxes are paid depends on the type of tax. Your company withholds FICA taxes (along with their federal income taxes) from your employees’ paychecks. You’ll then transfer these funds, along with your own contributions, via the Electronic Federal Tax Payment System (EFTPS).

Your deposits must be made either on a monthly or semi-weekly schedule—an election you make before each calendar year.

- Monthly payments. A monthly payment must be made by the 15th of the following month.
- Semi-weekly payments. Every other week deposit dates depend on your pay schedule. If your payday falls on a Wednesday, Thursday or Friday, your deposit is due Wednesday of the following week. If you pay on any other day, it’s due the Friday of the following week.

FUTA taxes are handled differently. Your company pays these taxes entirely, so nothing is withheld from employee paychecks. This payment must be deposited quarterly to the EFTPS by the last day of the month after the end of each quarter.

However, if your quarterly total amount is less than $500, you can carry it forward to the next quarter. (This carryover can continue over multiple successive quarters if your total amount stays under this threshold. Once you exceed it, your payment must be made by the next applicable due date.)

Penalties for late payroll tax payments

Failure to remit payroll taxes on time can result in serious consequences. Financial penalty amounts depend on the circumstances:

- 2% penalty assessed if your deposit is 1-5 days late
- 5% penalty assessed if your deposit is 6-15 days late
- 10% penalty assessed if you’re more than 15 days late but before 10 days after the date of your first IRS notice
- 10% penalty assessed if deposits were instead paid directly to the IRS or with your tax return
- 15% penalty assessed if any amount is unpaid more than 10 days after the date of your first IRS notice (or the day you receive a notice requiring immediate payment)

Note that you aren’t the only one affected by late payroll tax payments. Your employees could lose future Social Security, Medicare, or unemployment benefits if those funds aren’t paid. So take care of your obligations—and your employees—by making complete payroll tax payments on time.

Don’t forget reporting requirements

Collection and payment aren’t your only tax responsibilities. You’ll also have to report these amounts (and other information) regularly to the IRS.

For FICA tax (as well as federal income tax), you must complete and file Form 941, Employer’s Quarterly Federal Tax Return. This form is due by the last day of the month following the end of each quarter, although some employers might be considered annual filers.

Note that depending on the type of business you run, you might file an alternate form. For example, a farm uses Form 943 instead of Form 941.

FUTA taxes are reported annually using Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return. Each year’s return is due by January 31 of the following year.

And now, a word from the states…

That’s right—payroll taxes aren’t solely the federal government’s domain. States have their own payroll taxes as well. Every state has its own unemployment tax (called SUTA or UI).

This tax rate can vary not only by state but within each state as well. This is because your company’s industry, years in business and unemployment history can all determine the percentage used to calculate the amount due.

There are several other types of non-federal payroll taxes out there. These can cover programs like short- and long-term disability, workers’ compensation, paid medical or family leave and more.

And while we discussed state income tax in a previous article, you should also remember local income taxes. These are sometimes assessed in large urban areas (think New York City, San Francisco, etc.). There are 14 states that allow local governments to collect an income tax.

Finally, the collection, remittance and reporting of state and local-level taxes depend on the governments that levy the taxes. Each entity has its own rules and methods.

Get help from a tax professional

Clearly, the subject of payroll taxes involves plenty of moving parts and covers a wide range of accounting knowledge. A U.S.-based international CPA can draw on expertise in all of these areas when advising you on your unique business setup.

At James Moore, our international tax advisors pride themselves on providing comprehensive accounting, tax and consulting services for multinational companies, individuals and businesses entering the U.S.

Accounting Services
Advisory
Industry
Insights
About Us
- Who We Are
- Our Team
- News
- Events
- Locations
Contact
Search
Search

Type your search here...

0 events found.

There are no upcoming events.

Events Search and Views Navigation

Enter Keyword. Search for Events by Keyword.

Event Views Navigation

List
Month
Day

Today

Select date.

Latest Past Events

Jun 11 2025

A person in business attire holds a folder labeled “Accounting Services” in an office setting, symbolizing professional financial or outsourced accounting support.

June 11 @ 2:00 pm - 3:45 pm

Government CPE Webinar: The Case for Outsourced Accounting

GoToWebinar

In this session, we’ll discuss the current state of government finance and look at the pros and cons of outsourcing portions of your finance. Areas covered will include the concerns…

FREE

Jun 5 2025

June 5 @ 2:00 pm - 3:00 pm

GenAI at Work: Secure, Smart & People-Ready

Virtual | Online

Generative AI is reshaping the workplace—improving workflows, enhancing security and changing how teams operate. In this on-demand session, leaders from James Moore’s HR Solutions, Technology Services and Digital teams share…

Free

Jun 4 2025

A person analyzes financial data on a tablet, with multiple graphs and charts also displayed on a nearby laptop screen, highlighting digital analytics and performance tracking.

June 4 @ 2:00 pm - 3:45 pm

Government CPE Webinar – The Future of Government Finance: How Gen AI and Data Analytics Reduce Manual Work and Unlock Insights

GoToWebinar

Government finance teams face growing challenges—managing complex data, ensuring accuracy, and making informed decisions with limited resources. Emerging generative AI (Gen AI) and data analytics tools offer practical solutions to…

FREE