My mother has a cleaning business and was wondering what exactly would the percentage of federal taxes should be withheld from each employee? Thank You!!!
2007-04-24 07:18:47 · 4 answers · asked by luvvleey_l 1 in Business & Finance ➔ Taxes ➔ United States
She would need to review Publication 15 from the IRS. The link is below. This is from the official IRS website and it free to access. She can also call the IRS if she had any questions. This publication gives you a breakdown based on their status and number of exemptions.
2007-04-24 07:27:48 · answer #1 · answered by kewltazdude 3 · 1⤊ 0⤋
She needs to read IRS Publication 15 (Circular E) Employer's Tax Guide. There is more she needs to know than just how much to withhold. Withholding tables are included in the publication. You can view it at the link below, but I recommend an employer obtain a paper copy. She should also consult a CPA to help here get started as an employer. It may be worth keeping the CPA around as a regular consultant.
2007-04-24 19:04:20 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Since she is an employer, she should already have all of the documentation for that. IRS Pub 15, Circular E, Employer's Tax Guide is the guiding document that she'll need to refer to when preparing payroll for her employees, filing payroll tax returns and paying payroll taxes. Each state has its own similar procedures.
2007-04-24 16:13:26 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
There is no set percentage except for social security and medicare. You withhold based on income, pay frequency and data from the employees W4.
It sounds like he should get some professional help on this before he gets in too deep.
2007-04-24 14:23:48 · answer #4 · answered by Wayne Z 7 · 1⤊ 1⤋