PAYROLL -Main Activities
- Ensure new employees are properly documented
- Ensure employee files are established and maintained
- Oversee administration of benefits entitlements
- Verify and report on benefits payments
- Verify annual leave records
- Verify and code timesheets and hours worked
- Calculate employee salaries, deductions and contributions
- Review payroll reports
- Calculate source and miscellaneous deductions
- Ensure paychecks are processed and distributed
- Ensure leave and lieu time is updated
- Review payroll summaries, journals and reports
- Make adjustments to the payroll as necessary
Employees-If you have employees, you must withhold various taxes from your employees’ pay.
1) Social Security Tax——6.20% 2014-Limit $117,000 2015-Limit$118,500 2016-Limit$ 118,500
2) Medicare Tax———–1.45%
3) State Income Tax
4)Federal Income tax——IRS Form W4———www.eftps.com
Employers-You may also need to pay certain employment taxes from your own funds. These include your share of social security and Medicare taxes as an employer, along with unemployment taxes.
SUTA State Unemployment Taxes. As an employer, you may have to make payments to a
State Unemployment compensation fund—Quarterly
MD— https://secure-2.dllr.state.md.us/webtax/welcome.aspx (First $8,500.00)
DC— http://does.dc.gov/page/ui-taxes (First $9,000.00)
VA— https://www.business.tax.virginia.gov (First $8,000.00)
FUTA -Annual Federal Unemployment Tax return—Form 940
Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs.
The FUTA tax applies to the first $7,000 you pay to each employee during a calendar year after subtracting any payments exempt from FUTA tax.
Disclaimer: informational purpose only, please consult your accountant and/or federal & state agency for more information.