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Authorization for Pre Tax Payroll Reduction Enrollment Form

Authorization for Pre Tax Payroll Reduction Enrollment Form

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the government says hire employees pay them salaries but on top of that you're going to pay payroll tax so you as an employer you're probably already familiar that you pay what's called a social security tax and a Medicare tax so altogether this makes up 7.65% on top of that what's another most common payroll tax is a state unemployment insurance tax this is basically state is taxing you on the fact that if the employee claims unemployment insurance the state will pay them unemployment benefits this tax ranges anywhere from 1% and up and usually has a limit depending what state you're in I think in New York state we like at $114,000 limit but overall I like to calculate a 10% total payroll tax because there's some other costs that you incur when you run payroll and that is your payroll expense so your total cost as an owner is 10%

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