Taxing MattersEverything you wanted to know about payroll taxes, and then some.
Opinions expressed by Entrepreneur contributors are their own.
If you are the sole owner of a corporation and pay yourself asalary, you are in the unique position of being your own boss--andyour own employee.
As an employee of your corporation, you must have payroll taxeswithheld from your earnings: federal and state income taxes, aswell as FICA (Federal Insurance Contributions Act, to be explainedin detail below). As the employer of your corporation, you must paya matching amount of FICA tax and remit this tax, along with thefederal income tax withheld, to the IRS. Any state and local incometaxes withheld must be paid to the state department of revenue.Employers must also pay federal and state unemployment taxes onbehalf of their employees.
Continue reading this article — and all of our other premium content with Entrepreneur+
Join the internet’s leading entrepreneur community! With your subscription you’ll get:
- Access to all of our premium content and an ad-free experience
- 一个比较limentary subscription to Entrepreneur Magazine
- Four free e-books a year and 20% off everything from our bookstore
- Exclusive events with business celebrities and successful entrepreneurs
