Deduction Question

[Donna]

I am accounting illiterate. I am trying to figure out how much tax an employer would need to pay and how I am saving them money. For instance, let's say an employer were to pay $50K per year - what taxes are they responsible for and what would it cost them per year? Is there a calculator available someplace online?

I know I should know this, but why bother when I have you wonderful folks to ask!

Thanks in advance.....

Donna

[mharris]

Donna, I hope this helps you some.

Medicare and Social Security tax (FICA)
Federal unemployment tax
State unemployment tax
Plus this forum has a chart http://www.virtualassistantforums.co...calculator.php

Mary Harris
iVirtual Services

[kimbeckers]

Hi Donna,

The taxes they are responsible for as far as payroll tax is concerned is dependent on the deductions the employee makes to some extent, meaning if they are claiming single 1 or married 3. Some of the taxes the employer pays is based on matching what the employee pays. Other taxes such as FUTA, SS and State Unemployment are based on specific rates. FUTA is .8% with a cap at $7000, in NY State Unemployment is 5% but varies from state to state.
Social security is 6.2% with an annual limit of $102,000, Medicare is 1.45%


Here is a link to a paycheck calculator that may help you:
http://www.paycheckcity.com/

Hope this helps.

Kim

[sfdbooks]

Hi Donna,

The taxes they are responsible for as far as payroll tax is concerned is dependent on the deductions the employee makes to some extent, meaning if they are claiming single 1 or married 3. Some of the taxes the employer pays is based on matching what the employee pays. Other taxes such as FUTA, SS and State Unemployment are based on specific rates. FUTA is .8% with a cap at $7000, in NY State Unemployment is 5% but varies from state to state.
Social security is 6.2% with an annual limit of $102,000, Medicare is 1.45%


Here is a link to a paycheck calculator that may help you:
http://www.paycheckcity.com/

Hope this helps.

Kim

Actually the exemptions claimed for withholding only affect the personal income tax withheld from the employee's check. It does not affect the employers liability at all.

[Rebecka Melson]

There are a lot of factors involved when trying to figure an employer's savings, other than just the 7.65% of FICA. There are also Federal unemployment taxes and State unemployment taxes that vary by State. There is also workers compensation insurance, health insurance, 401k, other fringe benefits, overhead costs, etc. that will vary by employer.

Your best bet would be to go to someplace like salary.com and get a national average.

[Donna]

Thanks. This was exactly what I needed! Love this forum! Now I never need to learn bookkeeping!

Donna