Accurate Data’s Resource Center
Get general payroll help and stay informed on important payroll issues with Accurate Data’s Resource Center. You will find answers and insights into common payroll processing questions as well as special links to helpful areas.
As an employer, you have specific payroll responsibilities required by government agencies. These agencies can be federal, state or local. Some of these responsibilities include, but are not limited to, withholding amounts from your employees’ compensation to cover income tax, social security, Medicare, and other payments. This section is designed to help familiarize you with the basic concepts of payroll management and introduce options to help make the process easier. Consult with a tax professional or accountant to address all of your business’s specific needs.
What Are Payroll Taxes?
Any tax levied by a government agency on employees’ wages, tips, and other compensation. The amounts withheld by employers from employees’ pay for federal income, social security, and Medicare taxes are considered trust fund taxes. They are referred to as trust fund taxes because the money is held in a special trust fund for the U.S. government. Amounts withheld for state and local income taxes are held in trust for the state or local government.
What Are Your Responsibilities?
Reporting and depositing payroll taxes to the appropriate agency in an accurate and timely manner is vital to your business. Late or inaccurate deposits may result in penalties and interest charges. These complex payroll tax requirements may seem intimidating but by learning a few simple concepts, you will be able to understand your payroll responsibilities and choose the best method for meeting them.
Hiring Your First Employee
As your business becomes more successful, you may need to consider hiring one or more employees and taking on the responsibilities of payroll tax withholding and reporting. Hiring an employee is fairly straightforward. However, if you are unfamiliar with the payroll process and applicable laws, you may find yourself subject to significant monetary penalties. As soon as you have hired a new employee, there are several forms that need to be filed with the federal, and, in many cases, state governments. Each new employee must complete a W-4 form and I-9 form. The information on the W-4 form is the basis for calculating the amount of withholding for that employee. Generally, employers do not need to send a copy of the W-4 and I-9 form to the IRS or state or local tax organization. You must keep the form W-4 and I-9 on file for each active employee and retain these documents for four years after an employee is terminated.
Need IRS Forms? How About State, Federal or Key Business Information? Click on these special links to go directly to each designated area.
Federal Government Agencies
- Internal Revenue Service – The IRS Digital Daily Home Page
- IRS Tax Form: W-4 – Link to W-4 Form
- IRS Tax Form: W-9 – Link to W-9 Form
- IRS Tax Form: 1040 – Link to 1040 Form
- IRS Form: I-9 – Link to I-9 Form
- United States Department of Labor – Labor laws and regulations
- Social Security Administration – Link to the SSA
- Small Business Administration – Great resource for small business owners
- United States Postal Service – Link to the USPS
- U.S. Patent & Trademark Office – Link to the US Patent Office
- Business.Gov – Link to Official Government Information
- Social Security Verification Service
State Government Agencies
- Ohio State Tax Forms
- Ohio Taxes
- Information Releases
- Online Services for Business – registration and filing
- Interest Rates
- Ohio Due Dates
Non Governmental Agencies
- HRZone.com – Your guide to human resources on the web
- International Society for Performance Improvement
Other Useful Sites
- Small Business Taxes & Management – Tax guidance for small businesses
- The Essential Link to Taxes – An index of tax oriented sites on the net
- Big Book/Yellow Pages – Link to Yellow Book