IRS Payroll Tax with The Law Offices of Nick Nemeth
  • February 15, 2019
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Every employer must report and deposit payroll taxes on time. The IRS mandates employers to provide an accurate record of the total income of employees and the amounts withheld. It is, therefore, important for employers to know the steps involved in preparing and filing IRS payroll tax returns to avoid mistakes that can have serious repercussions, including heavy penalties. Continuing on the subject, in this blog post, we explain the basics of payroll taxes and how to pay payroll taxes to the IRS. Take a look.

Taxes Included in Payroll Taxes

There are three major types of taxes that are included in payroll taxes, including:

Federal Income Tax

Federal tax income refers to the taxes levied by the IRS on the annual earning of employees, trusts, or any other entities. Such taxes are applicable for any form of earning, including capital gains or employment earnings.

FICA Taxes

Taxpayers are required to deposit FICA taxes along with the federal income tax. FICA taxes are basically categorized into two parts, including:

Social Security

6.2% is withheld from an employee and 6.2% is paid by an employer – from wages above $128,400. The total percentage of social security to be withheld/paid amounts to 12.4%.


When it comes to medicare, 1.45% is withheld from an employee and 1.45% is paid b the employer. The total percentage to be withheld/paid amounts to 2.9%.

Federal and State Unemployment Taxes

Federal and state unemployment taxes are solely paid by the employer. These taxes are not withheld from an employee’s wages. In a quarter, if an employees FUTA tax liability is above $500, they need to make quarterly deposits for the tax liability. However, if an employees tax liability is lesser than $500, they are not required to pay any FUTA taxes. In addition, any tax payment remaining at the end of a tax year, it needs to be deposited before 31st January.

Paying Payroll Taxes: Steps Involved

  • Issue Form W-4
  • Prepare paychecks
  • Account for withholding of benefits, taxes and other deductions
  • Make deposits of taxes withheld
  • Issue Form W-2
  • Report the employee taxes withheld, required employer taxes and deposits

Payroll Reporting

The IRS requires employers to report their wages and other forms of compensation that are paid to employees. It is mandatory for every employer to file all the relevant forms to report employment taxes.  In addition to income taxes, employers also need to report unemployment and FICA taxes. Once a company has deposited the taxes, they must report the deposited taxes by submitting Forms 940, 941, and 944, either through e-filing or on paper.

Must Read: Answering 5 FAQs about IRS Payroll Tax Payment

Wrap Up

IRS payroll taxes may seem simple on the surface; however, it can involve a lot of intricacies that calls for professional expertise. If you are unable to meet your IRS tax debt obligation, speak with an IRS tax attorney at the Law Offices of Nick Nemeth. We have a team of experienced IRS tax lawyers with years of experience in helping individuals and businesses navigate IRS tax debt problems. For a confidential, no-obligation consultation with one of our lawyers, fill out our contact form or simply call (972) 426-2553.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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