Home / Northern Colorado Start-Up Center / Compliance / a�?Basica�? Payroll Tax Rules

a�?Basica�? Payroll Tax Rules

payrollEmployers are subject to various withholding and other employment taxes as required by Federal and State taxing authorities.

Quarterly Payroll Tax Returns:

Internal Revenue Service a�� Form 941
Employee Federal withholding
Employee FICA withholding (6.2%)
Employee Medicare withholding (1.45%)
Employer FICA tax (6.2%)
Employer Medicare tax (1.45%)

Colorado Dept of Revenue a�� Form 1094
Employee State withholding

Colorado Dept of Labor a�� Form UITR-1
Employer State Unemployment tax *

* 2.52% for first year business on each employeea��s annual wages of up to $10,000

Annual Payroll Tax Returns:

Internal Revenue Service a�� Form 940
Employer Federal Unemployment tax *

SSA a�� Forms W-2, Copy A (red)
Reflection of taxable wages & related withholding

cialis 5mg daily dose price SSA a�� Form W-3
Federal W-2 summary transmittal

Colorado Dept of Revenue a�� Form 1093
State W-2 summary transmittal

* 0.80% for each employeea��s wages of up to $7,000 ($56 max. per employee per year)

W-2s are due to employees by January 31st while they are required to be submitted to government agencies no later than February 28th.

Employee file requirements:

Critical Concept a�� Your business is a conduit for employee withholding taxes as you set aside amounts from your employees and then remit it to the government agencies. Ita��s not your money so avoid the delusion of riches and consider depositing taxes as frequently as possible, such as monthly or semi-weekly via EFT.

Suggestion a�� To avoid the cost of resubmitting, wait to file W-2s with government agencies toward the end of February after your employees have had a chance to review their own W-2 so changes can be made easily rather than outright amending (Form W-2c).

Caveat – Please contact your legal, business and tax advisors to determine appropriate compliance with federal, state and local law and related filing requirements for your particular business.

Disclaimer – Advice, instruction and forms provided above are for illustrative purposes only and are offered as a public service without representation or warranty and is not intended or written to be used, and cannot be used, for the purposes of constructing unlawful acts under federal and state law or avoiding penalty under the internal revenue code.