Payroll in U.S.
Manage Your Team’s Payroll Without Errors or Legal Risks.
Managing payroll in the U.S. requires compliance with federal and state obligations, as well as mandatory insurance and reporting. Our comprehensive payroll service ensures your business stays compliant, pays employees accurately, and avoids penalties.
Included Activities and Processes:
Initial Registration and Setup
- Employer registration with the IRS using Form SS-4 (EIN).
- Registration with the state Department of Labor for state tax payments.
- Enrollment in State Unemployment Insurance (SUI).
- Registration for Workers’ Compensation Insurance, required in most states.
Payroll Processing
- Calculation of gross wages, regular hours, overtime, vacation, and benefits.
Mandatory Deductions
- Federal Taxes: Federal Income Tax (FIT) withholding, Social Security (6.2%), and Medicare (1.45%).
- State Taxes: Vary by state (some states have no income tax).
- Local Taxes: Withholding in certain counties/cities
Employer Contributions
- Social Security and Medicare (FICA – employer portion).
- Federal Unemployment Tax (FUTA).
- State Unemployment Tax (SUTA).
Forms and Reporting
- Form W-4: Completed by employees to determine withholdings.
- Form W-2: Annual summary of wages and taxes withheld, provided to employees and submitted to the IRS/Social Security Administration.
- Form 941 (quarterly): Federal payroll tax report.
- Form 940 (annual): FUTA tax return.
- State quarterly and annual forms (varies by state).
- Annual reporting to the IRS for independent contractors using Form 1099-NEC (if applicable).
Payments and Compliance
- Electronic deposit of federal and state taxes via EFTPS (Electronic Federal Tax Payment System).
- Submission of state payroll reports through official portals.
- Management of mandatory insurance payments: unemployment and workers’ compensation.