The Basics of Payroll Processing

Payroll processing for W-2 employees involves paying percentages of their income to federal, state, and local tax agencies and matching what is owed to Social Security and Medicare. You’ll also need to pay state unemployment insurance (SUI) and comply with the Federal Unemployment Tax Act (FUTA). After you’ve made all of these complicated calculations, it’s time to cut paychecks or … Read More

Claiming W-4 Form Allowances

The beginning of a new year is a good time to review the allowances you’ve claimed on your W-4 form (Employee’s Withholding Allowance Certificate). Each allowance claimed reduces the amount of federal tax withheld. The more allowances claimed, the less tax is deducted, giving you more money in your pocket each pay period. The goal is to withhold enough tax … Read More