Payroll Tax 101 - Texas

TEXAS CONFERENCE FOR EMPLOYERS EMPLOYMENT LAW UPDATE

Lunchtime Live! Payroll Tax 101

William T. (Tommy) Simmons Legal Counsel to Commissioner Aaron S. Demerson

Commissioner Representing Employers employerinfo@twc.

FAQs: Book:

Web app: Toll-free: 1-800-832-9394 Direct: 512-463-2826

OSHCON ? Free Safety Consultations: No-cost Confidential Virtual On-line Safety Consultations

The Texas OSHA Consultation Program (OSHCON) offers nocost confidential online/virtual help for Texas businesses. OSHCON Consultants are available by: ? Video conferencing ? Email and Text ? Phone ? go to for consultants' direct office

numbers ? On-line:

OSHCON ? Free Safety Consultations: No-cost Confidential Virtual On-line Safety Consultations

OSHCON also provides: ? Training ? Help with safety and health programs ? Free safety training materials and publications We can help you find, reduce, and remove safety and health hazards, and understand OSHA standards.

Payroll Taxes ? Federal and Texas

? Payroll taxes are owed on wages ? Wages ? remuneration or compensation for personal

services rendered ? Federal: withholding tax, FICA / Medicare, federal

unemployment tax ? Texas: state unemployment tax

Before You Do Anything Else ...

? Get the new employee to fill out and sign a W-4 ? An employer has the legal right to require submission of a

completed W-4 ? Do it before allowing the employee to work ? The W-4 has everything an employer needs to properly

report wages and pay payroll taxes to the IRS and TWC ? Allowing employees to work before they complete a W-4

invites problems if the employee quits suddenly

Federal Payroll Taxes

Essential IRS guidance for federal payroll taxes is found in the following IRS publications: ? 15 (Circular E): (basic

withholding tables and other information) ? 15-A:

(supplementary payroll tax information; exemptions) ? 15-B: (taxation of

fringe benefits)

IRS Assistance with Federal Payroll Taxes

? Call IRS for assistance: local IRS office directory is at

? For assistance over the phone from the national IRS office, see

? Local IRS offices are more accessible than the national office

? Alternative: consult a CPA or utilize good payroll accounting software

Federal UI Tax

? The federal UI tax rate is 6%, which is applied to the first $7000 of an employee's wages in a calendar year.

? The federal UI tax rate is 0.6% for employers that operate in a state with a federally-compliant unemployment system and that pay their state UI taxes properly.

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