Employers are required to withhold income taxes from employee paychecks based on each employee's marital status, amount of wages earned, and the number of withholding allowances. Employers must get an Employee’s Withholding Allowance Certificate (W-4 form) from each employee indicating the number of withholding allowances. W-4 forms are available through the IRS.

Social Security Tax (FICA)

Employers are required to withhold employees' share of the Social Security and Medicare tax from wages; they must also match each employee’s contribution.

Federal Unemployment Tax (FUTA)

Most employers are required to report and pay federal unemployment tax (FUTA), though sole proprietorships and partnerships do not pay FUTA on owners’ compensation.

Periodic Deposits

Employers are required to make periodic deposits of withheld income taxes and Social Security and Medicare taxes. There are substantial penalties for failure to make timely deposits.

More Information

IRS Employment Tax Guidelines 
Social Security Tax Guidelines