Setting up the appropriate tax withholding and unemployment accounts is an important step in hiring employees. Businesses should be focused on their core business objectives, not spending valuable time with matters such as payroll. LicenseLogix will help navigate your business through the initial stages to becoming properly licensed in each state.
Generally, all businesses must set up a withholding tax account and a state unemployment tax account (SUTA) if they have paid, or will pay, wages to employees. The required licenses, application processes and licensing organizations vary greatly from state to state. Finding the right licensing agency, filling out the appropriate application and timely filing of the application can be a tricky process. Let the professionals at LicenseLogix streamline this process for your organization.
Payroll taxes include both state and federal taxes that a business is required to withhold and/or pay on behalf of employees. Employers are required to withhold state and federal income taxes as well as social security and Medicare from their employees’ wages. Employers are also required to pay social security and Medicare taxes and State and Federal Unemployment Taxes.
Businesses must have the proper payroll tax accounts and ID’s established within a state where your business has employees. Locating the proper application to apply for the appropriate taxes can be complicated. The application process for each state’s payroll tax registration varies greatly. Some states, including California and New York, allow businesses to register for both withholding and unemployment tax using one application. The majority of states, however, require two separate applications to be submitted to separate governmental agencies in order to become properly registered as an employer.
Ramifications of Non-Compliance
Penalties for failure to properly file withholding and unemployment tax are generally monetary. The penalty assessment depends on the scale of the business, the untimeliness of the payment and past reporting history.
How we help your business:
- We streamline the overwhelming task of becoming properly licensed. Our licensing specialists will determine the necessary registrations, compile applications and make sure your business receives the license.
- We ensure your business is in full compliance by correctly setting up your payroll tax registration the first time.
- We save you money by allowing your employees to focus on your core business purpose. Let LicenseLogix focus on what we do best, getting your business licensed.
More Resources:Employment Taxes | Internal Revenue Service
Myths About Payroll Taxes by the Small Business Administration