One of the best resources for employer-related tax laws is Publication 15 from the Internal Revenue Service (IRS). This publication explains your tax responsibilities as an employer. It also goes through the requirements for withholding, depositing, reporting, paying, and correcting employment taxes. It explains the forms you must give to your employees, those your employees must give to you, and those you must send to the IRS and SSA.
Publication 15 also has tax tables that are needed to figure out the taxes to withhold from each employee. References to “income tax” in this guide apply only to “federal” income tax. Contact your state or local tax department to determine if their rules are different.
Publication 15 Explains Employer Tax Responsibilities
The Internal Revenue Service (IRS) has released Publication 15 (Circular E), Employer's Tax Guide, for use in 2018. This publication:
- Details employers' federal tax responsibilities
- Explains the federal requirements for withholding, depositing, reporting, paying, and correcting employment taxes
- Lists the forms employers must give to their employees, those that employees must give to the employer, and those that the employer must send to the IRS and Social Security Administration
- Features the tax tables to figure the taxes to withhold from each employee
2018 IRS Publication Highlights
Highlights of the 2018 publication include the following:
- Social Security and Medicare Tax for 2018. The Social Security tax rate is 6.2% each for the employee and employer, unchanged from 2017. The Social Security wage base limit is $128,400.
- The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2017. There is no wage base limit for the Medicare tax.
- 2018 Withholding Tables. The publication includes the 2018 Percentage Method Tables and Wage Bracket Tables for Income Tax Withholding.
- Withholding Allowance. The 2018 amount for one withholding allowance on an annual basis is $4,150.
Click here to access the 2018 IRS Publication 15.