Did you know that if you own a company and you hire employees for that company that you have to pay federal payroll taxes? Yep, it’s true. This is something that your company has to do. In fact, the Internal Revenue Service is very picky about how they receive the money. If you make a miscalculation and send the wrong amount of money, you may end up seeing fees that rich into the thousands or even into the millions depending on the error. It’s very important to get these federal payroll taxes right so that you don’t have any problems.
There are several things that you should do so that you get this right. First of all, whenever you hire a new employee, you need them to fill out a W-4 form. This form will ask certain questions that will then affect how much money you withhold from their paycheck for taxes. For example, it asks whether they are married and how many dependants they have. Dependants are children and other people that depend on you for living expenses and care. All of these factors affect how much is taken out of the paycheck. Make sure that your employees know this and those they know that they should be filling out the form truthfully.