Payroll taxes are a fact of life, but that doesn’t mean you know all the facts.
Any time the federal government, a state government and a small business intersects, there are bound to be nuances. And when it comes to payroll taxes, those details matter; tax authorities take very seriously the withholding and remitting of funds from employees’ paychecks.
Here, then, are seven things you may not know about payroll taxes and certainly should.
1. Tax liability in other states.
If a business has employees in multiple states, payroll taxes may get more complex. Different states have their own rules regarding how payroll taxes are handled, as well as different rates in certain areas. “Hiring people to work for you in other states potentially creates unemployment tax liability in those states,” says NFIB member Sam Kerch, resident CPA and director of finance at Symmetry Software in Scottsdale, Arizona. “Check with the states you are dealing with to determine what other taxes you may be subject to.”Read the full article and discuss it »