PAYROLL TAX FILING INFORMATION - Ioi 2025

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What is IRS Form 941? IRS Form 941 is the form your business uses to report income taxes and payroll taxes withheld from your employees wages. It also provides space to calculate and report Social Security and Medicare taxes.
Payroll records are the combined documents pertaining to payroll that businesses must maintain for each individual that they employ. This includes pay rates, total compensation, tax deductions, hours worked, benefit contributions and more.
Employers use Form 941 to: Report income taxes, Social Security tax, or Medicare tax withheld from employees paychecks. Pay the employers portion of Social Security or Medicare tax.
Penalty For Filing 941 Late Your business will incur a penalty of 5% of the total tax amount due. You will continue to be charged an additional 5% each month the return is not submitted to the IRS for up to 5 months. The penalty will max up to 25% of the unpaid taxes.
State unemployment insurance (SUI) is a tax-funded program to give short-term benefits to workers who have lost their job through no fault of their own, as determined by state law. With the exception of three states (Alaska, New Jersey, and Pennsylvania), SUI is funded entirely by employers.
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When it comes to IRS Form 941 and the W-2, the most important point to remember is that both involve reporting employee wages. Form 941 provides the IRS with a quarterly snapshot of employment taxes, while the W-2 serves as an individual employees record of earnings and tax withholdings for the entire year.
Payroll tax is taken out of an employees earnings. Employers then send the withheld taxes along with their portion of Social Security and Medicare taxes when they deposit taxes. As an individual tax filer, you dont have to manually pay in payroll tax from each paycheck. Your employer will do this for you.
California. SUI Tax Rate: 1.5%-6.2%

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