Employers are responsible for paying the following payroll taxes that have no employee-paid portion:
1. Federal Unemployment Tax Act (FUTA) taxes: This tax is used to fund unemployment benefits for workers who have lost their jobs. Employers are required to pay 6% of the first $7,000 of each employee's wages, but they can receive a credit up to 5.4% if they pay state unemployment taxes on time.
2. State unemployment taxes: Each state sets its own unemployment tax rates and wage base, but they are generally paid solely by the employer to fund state unemployment benefits.
3. State workers' compensation insurance: Employers are required to pay workers' compensation insurance premiums to cover the costs of employees who are injured on the job. The amount paid is based on the employer's industry classification, payroll, and claims history.
which payroll taxes are paid by employers and have no employee paid portion
1 answer