PC Payroll Tour
Check Calculators Salaried
What are Payroll taxes?
Payroll taxes include Social Security and Medicare taxes (FICA withholding), Federal income tax withholding, Federal Unemployment taxes (FUTA), as well as State income tax withholding, State Unemployment tax (SUTA), and possibly State Disability withholding (SDI) and city/local withholding taxes.
What is the current FICA percentage and wage limit?
For 2007, the Social Security percentage remains at 6.2% for both employer and employee, with the wage limit at $97,500.00. The Medicare percentage remains at 1.45%, with no taxable wage limit.
What is the FUTA wage base and rate?
The current Federal Unemployment Tax rate is 6.2%, but credits for contributions to state funds (up to 5.4%) make the effective rate 0.8% (on a wage base of $7,000.00).
What is the current federal minimum wage?
At present the minimum wage is $5.15 per hour.
What effect does an employee's W-4 form have?
The status and number of allowances claimed on a W4 doesn't change the actual tax liability of the employee, just the amount withheld from each paycheck -- the more allowances, the less is withheld. If the employee claims too many allowances, he or she will owe money at the end of the year. Also, the employer does not have to submit the W-4 information to IRS unless an employee claims 10 or more allowances -- then that employee's W-4 should be sent to the IRS along with the next quarterly 941 form.
Where does the money come from for EIC payments?
Earned Income Credit payments are deducted from your FICA and/or Federal withholding tax deposit so there's no actual cost to the employer.
What is the 401(k) maximum contribution for this year?
The maximum total "pretax" contribution for 2007 is $15,500. Plus, if you are age 50 or over you may be eligible to make an additional "catch-up" contribution of $5,000 (if permitted under your 401(k) plan).
What's the Oklahoma SUI wage limit for this year?
The SUI taxable wage maximum for 2007 is $13,200.
What are some important payroll-related web sites?
The address of the official web site of the IRS is www.irs.gov. The Social Security Administration home page is www.ssa.gov. Payroll tax information can be found at www.payroll-taxes.com and the American Payroll Association home page is www.aspm.org.