The payroll tax map
- Employee withholding: federal/state income tax, Social Security, Medicare.
- Employer taxes: employer share of Social Security/Medicare, FUTA, SUTA, local.
Withholding vs. employer taxes
Employees fund part of FICA via withholding; employers match the FICA share and pay unemployment taxes. Some localities add additional payroll taxes.
Filing & reporting cadence
- Periodic deposits (semi‑weekly or monthly) based on lookback rules.
- Quarterly returns (e.g., federal employment tax returns) and annual W‑2/W‑3.
- State payroll filings for withholding and unemployment.
Cash‑flow planning
Automate deposits, reconcile payroll clearing accounts monthly, and forecast gross‑to‑net to avoid shortfalls.