Employment Taxes

Both employers and self-employed individuals are responsible for paying federal, state and local taxes. If you have employees, you must withhold certain taxes from your employees pay checks. Employment taxes include income taxes, social security and Medicare taxes, and the federal unemployment tax (FUTA). If you are self-employed, you are responsible for paying a self-employment tax that is similar to the social security and Medicare taxes withheld from the pay of most wage earners.

The following resources describe federal tax requirements for employers and the self-employed. For state tax requirements, including requirements for filing workers' compensation, disability and unemployment insurance taxes, consult the State Tax Guide.

For Self-Employed Individuals

• Self-Employment Tax
  The Self-Employment Tax is a social security and Medicare tax for individuals who work for themselves.
• Self-Employed Individuals and Independent Contractors
  Information helpful in answering many questions related to being self-employed individuals or independent contractors.

For Employers

• Employment Taxes for Businesses
  This IRS guide provides a description of federal taxes required for employers. Includes information on required forms (e.g. Form 941 and 944), filing requirements and deadlines, e-file options, and contact information for getting tax help.
• Withholding Compliance Questions and Answers
  Frequently asked questions about Form W-4.
• Independent Contractors vs. Employees : FAQs
  Are you or your help independent consultants or employees? Before you can learn how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services.
  
• Tax Withholding on Foreign Persons
  This section covers tax withholding topics for payments made to U.S. citizens abroad or aliens employed both in the United States and abroad. Also includes tax withholding and reporting rules on payments of U.S. source income made to foreign persons.
  
• Foreign Students and Scholars
  Aliens temporarily present in the United States as students, scholars, teachers, researchers, exchange visitors, and cultural exchange visitors are subject to special rules with respect to the taxation of their income.
  
• Reporting Agents (RAF)
  Reporting Agents assist employers in making required tax deposits and tax information filings to the federal government and to state and local governments.