Employment taxes are federal and state taxes related to employee's taxable compensation. OMS helps employers with the following tax responsibilities:
· Income tax withholding based on information provided by employees on Form W-4. This tax is paid exclusively by employees.
· All taxes and reporting must be completed by a set schedule.
· FICA. This is comprised of Social Security and Medicare taxes and is paid equally by employers and employees. The Social Security portion is referred to as OASDI and provides benefits to retirees, spouses and former spouses, as well as dependent children in some cases, and disabled individuals under retirement age. The Medicare portion allows those age 65 and older (plus certain other individuals) to qualify for Part A Medicare coverage with no additional cost, plus access to coverage through Parts B, C, and D for an additional premium.
· FUTA, which is federal unemployment tax paid exclusively by employers.
· SUTA, state unemployment tax is paid by employers, although a few states require some employee contributions. See your state laws for specific guidelines. In Florida, its quarterly Form RT-6.
· Provide an annual report to employees (W-2) and the Social Security Administration (W-3) about the employee's tax payments.
Other Withholdings: The employer may also be required to withhold other amounts from employees' paychecks, such as salary elective deferral amounts for employee contributions to 401(k) plans and flexible spending accounts or for garnishment to cover child support. These additional withholding amounts do not figure into employment taxes; however, they are an additional employer responsibility.