The Confusion Caused by the Payroll Laws in the United States

Having a hard time keeping up-to-date with the most recent government regulations, tax laws, and tax codes governing how employees should be paid? Had enough of the confusion? Had enough of the myriad of tax forms and their appropriate due dates? Well, you’re not alone. A number of companies have a hard time navigating the complexities of the payroll laws in the United States. For instance, there’s the 940 form of the Federal Unemployment Tax Act, or more commonly referred to as simply “FUTA,” and its strict guidelines as an employer only tax on the first $7,000.00 of an employee’s earnings. There’s the 941 form, or more commonly known as the “Employer’s Quarterly Federal Tax Return,” which is used to report the amount of Medicare taxes, Social Security and Federal withholding amounts for the IRS. Then there’s the 945 form, which is used to report the amount of non-payroll withholding amounts for employees.

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