Page 196 - Essentials of Payroll: Management and Accounting

CHAPTER 7
Payroll Taxes and

Remittances

After reading this chapter you will be able to

• Determine how frequently your business must remit payroll
taxes to the federal government, and by what means
• Fill out Form W-4 “Employee Withholding Allowance
Certificate” and Form 941 “Employer’s Quarterly Federal
Tax Return”
• Calculate employee income tax withholdings using either
the wage bracket or alternative formula methods
• Determine when withholdings should or should not be
made from the pay of employees working abroad

alculating and remitting a variety of payroll taxes is a function cen-
tral to the payroll department. In this chapter, we cover the pur-
Cpose and instructions for filling out several tax-related IRS forms,

as well as the calculation methodologies and remittance instructions for
federal and state income taxes, Medicare taxes, and Social Security taxes.
The discussion also addresses how to register with the federal govern-
ment to remit taxes and specialized issues related to the withholding of
payroll taxes for aliens or employees working abroad.

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