Employees of the Internal Revenue Service must read IRS Publication 15: Employer's Tax Guide, which details an employer's obligations for reporting and filing taxes. In this article, you'll find information on how to withhold, deposit and pay taxes for your employees. Circular E is another name for IRS Publication 15.

Understanding Publication 15 from the IRS

No state or local taxes may be calculated using IRS Publication 15. There are specific amounts for Medicare and Social Security taxes included in the Tax Guide. 2 To ensure that the correct amount of state income tax is taken from employees' paychecks, employers should consult their state's tax laws. IRS Publication 15-A contains additional tax information. 3

The Percentage Method Tables and Wage Bracket Method Tables for Income Tax Withholding were once a key part of the Employer's Tax Guide. With the release of the 2020 Employer's Tax Guide, these tables have been eliminated. Withholding tables and employer instruction on calculating employee withholding have been added to Publication 15-T. Withholding assistance for employers is provided by the IRS on its website, named the Income Estimated Tax Assistant for Employers.

What Are the IRS Publications?

The Internal Revenue Service publishes booklets that provide taxpaying citizens with in-depth information on various tax-related topics. The IRS publications don't often include detailed, line-by-line directions for filling out tax forms—each form has a distinct set of instructions for such a purpose—but they contain solutions to practically every tax question you'll encounter.

Identifying The IRS Publications

There is a publishing number and, more often than not, a name assigned to each media piece. They begin with Publication 1, "Your Rights as both a Taxpayer," and as of 2021, the publication with the highest number was 11433, which deals with the provision of Employee Benefit Plans.

Publication number has nothing to do with the relevance or utility of the publication itself. Only a tiny number of taxpayers will benefit from Publication 901's discussion on the impact of income tax treaties between the United States and other countries. Publication 936 addresses interest on house mortgages, one of the most common tax deductions. Publications are allocated numbers in the order in which they are created.

Content of IRS Publications

Some IRS publications address various topics, while others are more narrowly targeted. With Publication 17, "Your Federal Income Tax," you'll find practically all of the typical concerns and circumstances individual taxpayers face. In contrast, Publication 1600 "Catastrophe Losses" is merely a two-page leaflet outlining the IRS's help to natural disaster victims.

Updating of IRS Publications

The Internal Revenue Service frequently updates its publications to reflect changes in the tax code. As soon as new tax law is passed, some need to be updated, while others remain unmodified for a long time. The most recent revision date is generally noted on the publication's front cover.

Even though certain publications are withdrawn, the library's number is never changed. Publication 970, "Tax Benefits for Education," for example, will always have the number 970 attached.

IRS Publications

All IRS publications are available in PDF format for free download on the IRS website. The IRS provides the most recent version online to avoid having to go through many versions of a single publication.

You may access many of the most popular publications in web-page form on the IRS website, including links that allow you to browse rapidly inside the publication. You may also request that the IRS send you printed materials.

Employer Taxes: Three Easy Steps

Employing workers increases the number of tax duties you must bear. To comply with these requirements, you must report and deposit employment taxes, such as federal income taxes, Social Security and Medicare taxes, and Federal Unemployment (FUTA) taxes. Due dates for employment taxes may be found here.

Depositing Employees' Payroll Taxes

The IRS requires that all federal income taxes, as well as Social Security and Medicare taxes paid by employees and employers, be remitted. With the help of IRS Publication 15 or 51, you may learn more about the monthly or semi-weekly deposit dates that apply to your firm.

For any quarter in which the FUTA tax is more than $500, a FUTA tax deposit is needed and must be made no later than one month after the quarter's conclusion. FUTA taxes are paid by the employer and not deducted from your employees' earnings. The Electronic Federal Tax Payment System mandates that all federal tax deposits be done online.

Compiling Wage and Tax Information

You must file Form W2 with the IRS each year to record any salaries, tips, and other compensation you pay to your employees. In addition to reporting the taxes you deposit, you must also file a report. Forms 940, 941, and 944, which can be filed on paper or electronically, are used for quarterly income, Social Security, and Medicare tax reporting. Form 940 is used to report FUTA taxes each year.