Starting and running a business is a dream come true for many people. Yet, there are many obligations and taxes that new business owners aren’t aware of. Should your business be paying unemployment taxes in Lawrence, KS? Keep reading to find out more, then contact us for a review of your payroll taxes.
When You Must Pay Unemployment Taxes
Federal unemployment taxes for Lawrence, KS, businesses are paid to the IRS and reported on form 940. They fund the state and federal unemployment systems that provide wages to people who have lost a job through no fault of their own.
In general, the federal unemployment tax rate is six percent of the first $7,000 of salary for each employee. You should plan for this extra cost if you meet certain payroll requirements, including these:
- Your business has one or more employees for at least 20 weeks of a calendar year.
- Your payroll expense was at least $1,500 in any quarter of the year.
All employees must be considered in this estimation, including part-time, full time, and temporary workers. Contract workers are not employees, so you are not responsible for their payroll taxes.
Contact Us for Comprehensive Help
Whether you already have paid employees, or you are thinking of bringing on a new hire, contact us today at website for a comprehensive review of your payroll and tax situation. Peggy’s Tax and Accounting Services can help you determine what taxes you should be paying. This can help you plan for the success and future of your business without worrying about crossing the IRS.