Ameripride Tax Group Presents Eight Things Medical
professionals Really should Know About Payroll Taxes
According to the I...
Regardless of regardless of whether payroll occurs weekly, bi-weekly, monthly, etc., the similar
calculation is applied. T...
Statutory deductions are those withholdings which are necessary by law. Payroll taxes are statutory
deductions. Physicians...
* Preparing annual W-2 forms
5. The Company Portion of Payroll Taxes
Employers pay a portion of the total payroll tax for ...
Physicians have the similar responsibility as any other enterprise owner when it comes to reporting their
tax obligation i...
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Amerpride payroll taxes 2

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Amerpride payroll taxes 2

  1. 1. Ameripride Tax Group Presents Eight Things Medical professionals Really should Know About Payroll Taxes According to the IRS, employers are expected to report and remit payroll taxes for just about every employee. Even though filing payroll taxes may be a seemingly straightforward task, physicians along with other tiny organization owners should have a stand order to avoid costly mistakes. 1. The Standard Formula for Calculating Net Pay back Calculating the net shell out is often a reasonably uncomplicated calculation that is certainly made up of several important figures. The calculation looks like this: The employee's gross pay back (spend rate times hours worked) minus Voluntary deductions minus Statutory tax deductions RESULT: net pay back Ameripride Tax Group Presents Eight Things Medical professionals Really should Know About Payroll Taxes According to the IRS, employers are expected to report and remit payroll taxes for just about every employee. Even though filing payroll taxes may be a seemingly straightforward task, physicians along with other tiny organization owners should have a standard understanding of these eight principles in 1. The Standard Formula for Calculating Net Pay back Calculating the net shell out is often a reasonably uncomplicated calculation that is certainly made up of nt figures. The calculation looks like this: The employee's gross pay back (spend rate times hours worked) Ameripride Tax Group Presents Eight Things Medical professionals Really should Know About Payroll Taxes According to the IRS, employers are expected to report and remit payroll taxes for just about every employee. Even though filing payroll taxes may be a seemingly straightforward task, physicians along ard understanding of these eight principles in Calculating the net shell out is often a reasonably uncomplicated calculation that is certainly made up of
  2. 2. Regardless of regardless of whether payroll occurs weekly, bi-weekly, monthly, etc., the similar calculation is applied. Though this might look basic, the reality is, as with virtually everything in accounting, the devil is within the details. The person responsible for computing payroll need to check and re-check calculations to make certain that the payroll is error-free. 2. Voluntary Payroll Deductions Voluntary payroll deductions are precisely what they sound like: deductions chosen voluntarily by the personnel. The employee must request the deductions in order for an employer to withhold the cash. This sort of deduction could be utilized to spend for a range of benefits, such as: * Retirement plan contributions (for example a 401k plan) * Personnel stock buy plans (ESPP and ESOP plans) * Health insurance coverage premiums (medical, dental, and vision) * Life insurance premiums * Union dues * Uniforms * Meals * Other job-related expenses Voluntary deductions ought to be tracked cautiously and applied to the right account. Depending on the variety of benefit, they may be compensated with pre- or after-tax dollars.- Ameripride Tax Group 3. Statutory Payroll Tax Deductions
  3. 3. Statutory deductions are those withholdings which are necessary by law. Payroll taxes are statutory deductions. Physicians and other tiny organization owners, in truth every employer, accept a fiduciary responsibility to take these withholdings from the employee’s paycheck and remit them on the appropriate tax agencies. Payroll tax deductions might include: * Federal revenue tax withholding (based on withholding tables in Publication 15) * Social Security tax withholding (6.2% up on the annual maximum) * Medicare tax withholding (1.45%) * State income tax withholding * Numerous local tax withholdings (which include city, county, or school district taxes, state disability or unemployment insurance)!!! 4. Payroll Tax Responsibilities for Health professionals On top of that to collecting voluntary and statutory withholdings, employers also have the following responsibilities: * Allocating and depositing the company portion in the payroll taxes * Depositing tax dollars withheld * Preparing reports for state and Federal authorities * Filing payroll tax returns * Accounting for voluntary withholdings and ensuring that those monies are sent towards the suitable account
  4. 4. * Preparing annual W-2 forms 5. The Company Portion of Payroll Taxes Employers pay a portion of the total payroll tax for every worker. These taxes are an extra amount paid for the government and might be utilized to compute the fully-burdened price of an employee. The employer-portion of payroll taxes consists of: * Federal unemployment taxes (FUTA) * State unemployment taxes (SUTA) * Social Safety taxes (6.2% up to your yearly maximum) * Medicare taxes (1.45% of wages) 6. FICA Taxes FICA (Federal Insurance Contributions Act) is actually a payroll tax that is comprised of Social Protection and Medicare taxes. These taxes are compensated both by the employer and the employees. Combined, the FICA taxes equates to 15.3%, which incorporates: * Social Safety (Employee: 6.2%) * Social Safety (Company: 6.2%) * Medicare (Personnel: 1.45%) * Medicare (Company: 1.45%) 7. Reporting Payroll Taxes
  5. 5. Physicians have the similar responsibility as any other enterprise owner when it comes to reporting their tax obligation in a timely manner. They need to also take care to deposit payroll taxes when they are due. Reporting requirements consist of: * Yearly federal unemployment tax return (Type 940 or 940EZ) * Employer's quarterly payroll tax return (Kind 941) * Yearly Return of Withheld Federal Income Tax (Form 945) * Federal tax deposits * Wage and Tax Statements (Kind W-2) 8. Timeliness is Essential Business owners can compensate federal payroll taxes by mail or on-line. No matter which approach is selected, it's critical to know when payments and reports are due and to submit them on time. As the enterprise proprietor, the physician or a trusted tax professional, must take into account their option of a payroll accountant cautiously. Moreover, an yearly audit of payroll documents really should be completed to make certain that any errors are caught prior to they turn into a bigger problem. Simply because employers act as an intermediary in collecting and sending taxes on the government, the IRS takes payroll taxes really seriously. In fact, it really is 1 of the few kinds of debt (tax other otherwise) that cannot be cleared away by a bankruptcy judgment. Ameripride Tax Group

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