Now that you know what the current year's federal payroll tax rates are, you might also want to review prior year's federal payroll tax rates to see how these changes affect business overheads and the ability to maintain a sufficient number of employees.
Fortunately, employers are assured that these payroll tax rates for state and federal taxes change on a yearly basis only. This helps you, the employer, determine the most advantageous payroll schedule for your employees. You need to know the four basic types of payroll schedules:
Each of these payroll schedules have advantages and disadvantages depending on your specific type of business operations and accounting methodology. You need to know your state laws regarding the frequency with which employees are paid, as well as the timeliness of payroll processing. You may rely on Fusion CPA to assist with determining the best payroll processing schedule for your particular needs.
If your business is comprised mainly of salaried employees, they are exempt from overtime pay. Hourly employees are not exempted. The most cost-effective way to manage payroll taxes and stay current on payroll tax rates is to engage the services of Fusion CPA.