Payroll Taxes and Forms – USA (Payroll Guide)

taxes forms payroll guide

The different kinds of payroll taxes and forms need to be applied by the USA citizen is as enumerated below:

Form SS-4

Application for EIN (Employer Identification Number)

This form is filled in order to apply for the Employer Identification Number. It is a 9 digit number, such as 14-2356789, that is accorded to employers, corporations, estates, sole proprietors, partnerships, specific individuals, trusts and other specific entities for the purpose of filing for taxes and reporting.

Form SS-8

Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding
Employees and firms both apply for this form in order to petition for determining the status of a particular employee in order to calculate and file for federal employment taxes as well as withholding of income tax. Filling and requesting for this form by the employee or the firm is basically querying to know whether the work and service provided to the employer or firm comes under the responsibilities of an employee or a self-reliant contractor.

Form W-2

Wage and Tax Statement

This W-2 form is basically filed by each and every employer, who is absorbed in business or trade, for all of his employees including those related to the employer, paying wages along with commission, inclusive of payments through checks for amount equivalent of $600 or more per annum, in return of the services rendered by them to the firm. This is basically filed in following scenarios:

  • Medical care tax, Income tax or social security tax are withhold from the employee.
  • In scenario wherein the employee do not claim for more than one allowance withholding or do not come forward to claim exemption from Form W-4 withholding, labeled as Employee’s Withholding Allowance Certificate, Income tax of the employee will be withheld.

Form W-2c

Corrected Wage and Tax Statements

Form W-2c is filed for following:

  • To make corrections in W -2 form, W -2AS form, W -2CM form, W- 2GU form, W 2VI form and W -2c form filed with Social Security Administration (SSA).
  • Also to accord employees with corrected and accurate W -2 form, W -2AS form, W -2CM form, W- 2GU form, W 2VI form and W -2c form.

Form W-3

Transmittal of Wage and Tax Statements

This form is used in order to relay Copy A of Form W-2

Form W-3c

Transmittal of Corrected Wage and Tax Statements

This form is used to communicate W-2c Form’s Copy A which is labeled as Corrected Wage and Tax Statement.

Form W-4

Employee’s Withholding Allowance Certificate

This form is completed by the employee with authentic information so that the employer can go for accurate Income Tax withheld from the employee’s wages. The employee should fill out Form W-4 every year or whenever there are any financial or personal changes made.

Form W-4P

Withholding Certificate for Pension or Annuity Payments

Migrants, U.S. citizens and their estates who are in the receiving end of annuities, specific deferred compensation and pensions file this Form W-4 to relay details, to the individuals providing the compensation, regarding the accurate amount of withheld Federal Income Tax from their payments.

Form 940

Employer’s Annual Federal Unemployment (FUTA) Tax Return

This form is filed in order to relay details of the annual Federal Unemployment Tax Act (FUTA) taxes. Along with support from State Unemployment Tax systems, the FUTA tax accords funds in order to pay unemployment compensation to the individuals and workers who are unemployed as they have lost their jobs. It is quite common for employers to pay FUTA as well as State Unemployment Tax. FUTA tax is only paid by the employers and is not reduced and deducted from the wages of the employees.

Form 940, Schedule A

Multi-State Employer and Credit Reduction Information

This Schedule A of Form 940 is basically used to calculate the annual Federal Unemployment Tax Act (FUTA) tax of the individual for those states who have made reduction in the credit for wages that are to be treated under laws for Unemployment Compensation.

Form 941

Employer’s Quarterly Federal Tax Return

Form 941 is used to report those taxes that the employers withhold from employee’s paychecks including withheld income taxes, Medicare taxes or social security taxes and also have to pay for employer’s part of Medicare tax or social security tax.

Form 941, Schedule B

Report of Tax Liability for Semiweekly Schedule Depositors

This form is enrolled only when the individual is considered as semi weekly schedule depositor. Individuals are considered semi weekly depositor only in following cases:

  • During the lookback period, the individual has accorded for employment taxes more than $50,000.
  • Tax liability of the individual corresponds to touching $100,000 or more on for any day in the previous calendar year or current.

Form 941-X

Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund

The only need to file this form is when the individual need to make some corrections in the Form 941 that has already been filed.

Form 943

Employer’s Annual Federal Tax Return for Agricultural Employees

Filing of this form, Form 943, is only applicable if the tax payer has given wages to one or more farm workers which were also subjected for withholding of Federal Income Taxes or Medicare and Social security taxes.

Form 944

Employer’s ANNUAL Federal Tax Return

Form 944 is structured for those employees whose stature and income in company is small, that is their Federal Income Taxes withheld, Social Security and Medicare is either touching $1000 or less than that. These employees will file and pay taxes only once a year and not quarterly as is the norm.

Form 945

Annual Return of Withheld Federal Income Tax

This form is used to provide information regarding the Federal Income Tax which is withheld, from the payments of Nonpayroll category. These payments include following:

  • Annuities and pensions inclusive of distributions received from retirement plans having tax approval such as Section 401 K, Section 403 B and 457 B (government section)
  • Retirement from Military
  • Winnings acquired from Gambling
  • Profits accrued from Indian games.
  • Voluntary withholding on certain government
    payments; and
  • Backup withholding.

Form 1040-ES

Estimated Tax for Individuals

The form 1040 – ES is filed to calculate and then pay the estimated tax.
Estimated tax method is basically used in order to figure out and pay taxes on that income which is not subjected to withholding such as revenue from interest, rents, self employment, dividends and alimony. Furthermore, in scenario wherein the applicant do not volunteer for withholding tax, he or she should opt for payment through estimated tax other incomes that is taxable like compensation received for unemployment and social security taxable benefits.

Form 1040, Schedule H

Household Employment Taxes

This Schedule H of Form 1040 is basically used to inform taxes for household employment that was paid wages through cash and the same wages were subjected under either Medicare, social security, FUTA taxes or was withheld from being included in Federal Income Tax.

Form 1042

Annual Withholding Tax Return for U.S. Source Income of Foreign Persons

Form 1042 is filed to account for the following:

  • The withholding of tax as per chapter 3 for specific income of foreign individuals inclusive of partnerships with foreign entities, nonresident aliens, foreign corporations, trusts and estates.
  • Withheld tax on basis of Chapter 4 for payments that can be withheld.
  • As per section 1000C tax is withheld for some specific payments of Federal procurement.
  • Payments that are accounted for under Chapter 3 and 4 for Form 1042-S.

Form 1099-MISC

Miscellaneous Income

Form 1099-MISC is enrolled by the employer for each and every person paid by him during the current calendar year.

  • Payments made under royalties and brokers amounting to minimum $10 on behalf of dividends or interest of tax-exempt.
  • Made payments of at least $600 for the following:
    • Rents.
    • To the individual who have worked for the payer inspite of not being his employee.
    • Payments used for awards and prizes.
    • Payments for Health care and medical requirements.
    • Miscellaneous payments regarding income.
    • Proceeds send under Crop Insurance agreement
    • Payment in cash towards any individual, estate or partnership from an abstract principal contract.
    • Payment in cash for aquatic life like fishes etc that is purchased from the individual or firm that is working in business or trade of fishes.
    • Payments to legal advisor or an attorney
    • Proceeds paid for fishing boat.

Furthermore, this Form 1099-MISC is also used to relay details regarding the direct sale worth $5000 or more is made on consumer products to the buyer with the purpose of resale to anyone apart from permanent retail establishment.

Form 1099-R

Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
This form is used by the individuals for each and every person they have made specific distribution or are considered to have made one whose value is of $10 or more.

  • Plans for retirement or sharing of profit.
  • Any IRAs (Individual Retirement Arrangements)
  • Insurance agreements, annuities, benefit plans for survivor income, pensions
  • Payments for complete and permanent disability as per the Life Insurance Contracts and agreements.
  • Annuities for Charity gifts

Form 1120

U.S. Corporation Income Tax Return

Form 1120 is used by Domestic organizations for the purpose of:

  • Accounting the income, losses, credits, deductions and gains of the organization.
  • Find out the liability owed for Income Tax.

Form 4137

Social Security and Medicare Tax on Unreported Tip Income

This form is used by the employee only in case of finding out the owed amount of Medicare and Social Security tax on tips that is not reported to the employer inclusive of all allotted tips mentioned on the employee’s W-2 Form which is imperative to be included as part of income.

Form 8027

Employer’s Annual Information Return of Tip Income and Allocated Tips

This form is filed by food and beverage businesses (generally large size) for the purpose of annual reports that are sent to IRS. The reports are generated on the groundwork of tips and receipts of food and beverage operations garnered from the employees.

Form 8850

Pre-Screening Notice and Certification Request for the Work Opportunity Credit

Employers file for this form in order to preview and accord written petition to their SWA (State Workforce Agency) to garner certification for an individual who is a member of a particular group that is eligible to gain Work opportunity Credit.

These forms and taxes are what comprise of payroll forms and tax payments. Any employee or employer falling under any category of the forms enumerated above need to file and report for that particular form in order to avoid penalty for wrong and not filing taxes properly. For any further queries and information you can swiftly get in touch with the tax experts and QuickBooks Payroll Helpdesk of www.qbpayrollhelp.com via Toll Free Number +1-844-827-3817.

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