Tax Returns
Tax Returns
Most state and federal agencies require employers to report using tax returns for both employer and
employees quarterly. These returns usually include the employee’s:
• Name
• Social security number
• Gross wages paid for the quarter
This information is used to verify an employee’s eligibility for state unemployment insurance and the amount of compensation benefits to be paid. Tax returns are also used to reconcile the tax deposits remitted; some tax payments can be sent when the return is filed
Form 941: Employer’s
Quarterly Federal Tax Return
Reports wages and taxes for federal income tax,
employee social security and Medicare tax, and
employer social security and Medicare tax.
Quarterly
Form 940: Employer’s
Annual Federal
Unemployment Tax Return
Reports wages and taxes for FUTA. Although
deposits are made quarterly if FUTA tax liability is
$500 or more, the return itself is still filed annually.
Quarterly deposits
if over $500;
annual filing
Form W-2: Wage and
Tax Statement
Reports individual employee wages and taxes.
One copy is given to employees; another copy is
filed with the Social Security Administration (SSA).
Annually
Form W-3: Transmittal of
Wage and Tax Statements
Summarizes information reported on Forms W-2.
Filed with the SSA along with copies of Forms W-2. Annually
SUI Reports wages and SUI tax on state-specific form. Quarterly
Withholding Reports wages and taxes for state and local
withholding. Varies by agency
Federal Tax Deposit Rules
• Federal Tax Deposit Rules
• Federal Tax Return Due Dates
• Federal Tax Deposit Due Dates
• End-of-Year Payroll Checklist
Federal Tax Payments
Effective January 1, 2011, federal taxes must be paid via the Electronic Federal Tax Payment System (EFTPS) unless
you owe $2,500 or less with your quarterly Form 941. Details for enrolling in EFTPS are available at eftps.gov.
2022 Payroll Tax Deposit
Rules, Regulations,
and Deadlines
FICA Limits 2021 2022
Social Security (OASDI) Wage Base $142,800 $147,000
Medicare Wage Base No Limit No Limit
Social Security Percentage 6.2% 6.2%
Medicare Percentage 1.45% (2.35% for individuals 1.45% (2.35% for individuals
earning over $200,000) earning over $200,000)
Maximum Social Security Withholding $8,853.60 $9,114.00
Maximum Medicare Withholding No Limit No Limit
Maximum FICA Withholding No Limit No Limit
For self-employed individuals, the 2022 social security wage base is $147,000 with the social security tax rate remaining at 12.4%. There is no Medicare
wage limit, and the Medicare tax rate remains at 2.9% (3.8% for those individuals earning more than $200,000). The tax applies to the net earnings from self-employment.
Source: Paychex
