Accounting

State Unemployment Tax Act (SUTA)

All states support their unemployment insurance programs by placing a payroll tax on employers.

Recording Employer Payroll Taxes

Employer payroll taxes are an added expense beyond the wages and salaries earned by employees.

Employer FICA Tax

Employers must pay FICA taxes on their payroll to employees

Employee Income Tax

most employers are required to withhold federal income tax from each employee's paycheck.

Merit Rating

reflects a companies stability or instability in employing workers

Net Pay

take home pay. gross pay minus deductions

Federal Unemployment Tax Act (FUTA)

Employers are subject to a federal unemployment tax on wages and salaries paid to their employees.

Recording Employee Payroll Deductions

Employers must accrue payroll expenses and liabilities at the end of each pay period.

Employer Payroll Taxes

Employers must pay payroll taxes in addition to those required of employees. These are FICA and unemployment taxes.

Employee Fica Taxes

The federal social security system provides retirement, disability, survivorship, and medical benefits to qualified workers.

Federal and State Unemployment Taxes

The federal government participates with states in a joint federal and state unemployment insurance program.

FICA Taxes

are required by law to be withheld from employees pay to cover costs of the system.

Employee Voluntary Deduction

beyond social security, medicare, and income taxes, employers often withhold other amounts of employees earnings.

Gross Pay

is the total compensation that an employee earns including wages, salaries, commissions, bonuses, and any compensation earned before taxes

Payroll deductions

withholdings, are amounts withheld from an employees gross pay