Tax Compliance is Our Highest Priority
Payroll is not only about employees getting paid.
When it comes to payroll it does not matter if your company has 1 or 1000 employees. Tax compliance responsibilities are the same. Here are some payroll basics you should know:
Payroll taxes are subtracted from the employee’s gross pay by the employer to get their net pay. Payroll taxes are withheld from each paycheck as it is received each pay cycle.
Payroll taxes include Federal and State Income taxes, Social Security and Medicare taxes, and Unemployment taxes.
Federal and state income taxes are paid by the employee. They are calculated based on the employee’s W-4 form and their amount of pay based on a formula provided by the IRS and State Department of Revenue. Each State has their own formula. New Jersey does not follow Federal guidelines for how some deductions are taxed.
Social Security and Medicare taxes, are paid by both the employer and the employee. Federal and State Unemployment taxes are usually paid by the employer. New Jersey is one of three states where both the employer and the employee pay unemployment taxes. State unemployment tax rates vary by employer and are based on the number of unemployment claims. New businesses start with an average rate. The business moves to an experience based rate over time and rates are reviewed for change every year.
To calculate Social Security, Medicare, and Unemployment taxes, the employer must know both the current tax rates and what the current wage threshold is. Once the wage threshold is exceeded then no more tax will be due. Tax rates and wage thresholds change every year.
At Pieper Payroll tax compliance is our highest priority. Our payroll services include automatic payroll tax administration.
- Properly calculating amount of payroll tax liabilities
- Depositing both employer and employee paying their portion of payroll taxes when due
- Filing all quarterly and annual compliance reports with federal, state and local tax authorities
We file all federal payroll tax reports
- W-2: Annual report of wages, tips, and other compensation paid to an employee, as well as the employee's taxes withheld.
- 1099: Annual report of payments made to an unincorporated business or independent contractor.
- 940: Annual report of all wages, tax liabilities and payments made under the Federal Unemployment Tax Act (FUTA).
- 941: Quarterly reports of federal wages, tax withheld from employees, employer's portion of Social Security or Medicare tax, and total tax deposits.
- 944: Quarterly reports of federal wages, tax withheld from employees, employer's portion of Social Security or Medicare tax, and total tax deposits.
We also file state reports for New Jersey and the remaining 49 other states
- New Jersey Employer Report of Wages Paid (NJ WR-30)
- New Jersey Employee's Quarterly Report (NJ-927)
- New Jersey Employer's Quarterly Report for Weekly Filers (NJ-927W)
- New Jersey Submitter Form NJ-EFW2-S