We’ll cover each briefly, as you’ll process these as tax deductions on employees’ paychecks. There are two categories of employment taxes at the federal level in addition to income tax: FUTA and FICA. And if Gusto makes a mistake or pays late, it will cover any penalties you incur. It houses tax rates for all states, so you don’t have to research. If you need help calculating, paying, and filing payroll taxes, consider using Gusto.
However, each state specifies its own tax rates, which we will cover in more detail below. Federal tax rates, like income tax, Social Security (6.2% each for both employer and employee), and Medicare (1.45% each, plus an additional 0.9% withheld from the wages of an individual paid more than $200,000), are set by the IRS.
Both employers and employees are responsible for payroll taxes.
