1. Ameripride Tax Group Presents Eight Things Medical
professionals Really should Know About Payroll Taxes
According to the IRS, employers are expected to report and remit payroll taxes for just about every
employee. Even though filing payroll taxes may be a seemingly straightforward task, physicians along
with other tiny organization owners should have a stand
order to avoid costly mistakes.
1. The Standard Formula for Calculating Net Pay back
Calculating the net shell out is often a reasonably uncomplicated calculation that is certainly made up of
several important figures. The calculation looks like this:
The employee's gross pay back (spend rate times hours worked)
minus Voluntary deductions
minus Statutory tax deductions
RESULT: net pay back
Ameripride Tax Group Presents Eight Things Medical
professionals Really should Know About Payroll Taxes
According to the IRS, employers are expected to report and remit payroll taxes for just about every
employee. Even though filing payroll taxes may be a seemingly straightforward task, physicians along
with other tiny organization owners should have a standard understanding of these eight principles in
1. The Standard Formula for Calculating Net Pay back
Calculating the net shell out is often a reasonably uncomplicated calculation that is certainly made up of
nt figures. The calculation looks like this:
The employee's gross pay back (spend rate times hours worked)
Ameripride Tax Group Presents Eight Things Medical
professionals Really should Know About Payroll Taxes
According to the IRS, employers are expected to report and remit payroll taxes for just about every
employee. Even though filing payroll taxes may be a seemingly straightforward task, physicians along
ard understanding of these eight principles in
Calculating the net shell out is often a reasonably uncomplicated calculation that is certainly made up of

2. Regardless of regardless of whether payroll occurs weekly, bi-weekly, monthly, etc., the similar
calculation is applied. Though this might look basic, the reality is, as with virtually everything in
accounting, the devil is within the details. The person responsible for computing payroll need to check
and re-check calculations to make certain that the payroll is error-free.
2. Voluntary Payroll Deductions
Voluntary payroll deductions are precisely what they sound like: deductions chosen voluntarily by the
personnel. The employee must request the deductions in order for an employer to withhold the cash.
This sort of deduction could be utilized to spend for a range of benefits, such as:
* Retirement plan contributions (for example a 401k plan)
* Personnel stock buy plans (ESPP and ESOP plans)
* Health insurance coverage premiums (medical, dental, and vision)
* Life insurance premiums
* Union dues
* Uniforms
* Meals
* Other job-related expenses
Voluntary deductions ought to be tracked cautiously and applied to the right account. Depending on the
variety of benefit, they may be compensated with pre- or after-tax dollars.- Ameripride Tax Group
3. Statutory Payroll Tax Deductions

3. Statutory deductions are those withholdings which are necessary by law. Payroll taxes are statutory
deductions. Physicians and other tiny organization owners, in truth every employer, accept a fiduciary
responsibility to take these withholdings from the employee’s paycheck and remit them on the
appropriate tax agencies. Payroll tax deductions might include:
* Federal revenue tax withholding (based on withholding tables in Publication 15)
* Social Security tax withholding (6.2% up on the annual maximum)
* Medicare tax withholding (1.45%)
* State income tax withholding
* Numerous local tax withholdings (which include city, county, or school district taxes, state disability or
unemployment insurance)!!!
4. Payroll Tax Responsibilities for Health professionals
On top of that to collecting voluntary and statutory withholdings, employers also have the following
responsibilities:
* Allocating and depositing the company portion in the payroll taxes
* Depositing tax dollars withheld
* Preparing reports for state and Federal authorities
* Filing payroll tax returns
* Accounting for voluntary withholdings and ensuring that those monies are sent towards the suitable
account

4. * Preparing annual W-2 forms
5. The Company Portion of Payroll Taxes
Employers pay a portion of the total payroll tax for every worker. These taxes are an extra amount paid
for the government and might be utilized to compute the fully-burdened price of an employee. The
employer-portion of payroll taxes consists of:
* Federal unemployment taxes (FUTA)
* State unemployment taxes (SUTA)
* Social Safety taxes (6.2% up to your yearly maximum)
* Medicare taxes (1.45% of wages)
6. FICA Taxes
FICA (Federal Insurance Contributions Act) is actually a payroll tax that is comprised of Social Protection
and Medicare taxes. These taxes are compensated both by the employer and the employees. Combined,
the FICA taxes equates to 15.3%, which incorporates:
* Social Safety (Employee: 6.2%)
* Social Safety (Company: 6.2%)
* Medicare (Personnel: 1.45%)
* Medicare (Company: 1.45%)
7. Reporting Payroll Taxes

5. Physicians have the similar responsibility as any other enterprise owner when it comes to reporting their
tax obligation in a timely manner. They need to also take care to deposit payroll taxes when they are
due. Reporting requirements consist of:
* Yearly federal unemployment tax return (Type 940 or 940EZ)
* Employer's quarterly payroll tax return (Kind 941)
* Yearly Return of Withheld Federal Income Tax (Form 945)
* Federal tax deposits
* Wage and Tax Statements (Kind W-2)
8. Timeliness is Essential
Business owners can compensate federal payroll taxes by mail or on-line. No matter which approach is
selected, it's critical to know when payments and reports are due and to submit them on time.
As the enterprise proprietor, the physician or a trusted tax professional, must take into account their
option of a payroll accountant cautiously. Moreover, an yearly audit of payroll documents really should
be completed to make certain that any errors are caught prior to they turn into a bigger problem. Simply
because employers act as an intermediary in collecting and sending taxes on the government, the IRS
takes payroll taxes really seriously. In fact, it really is 1 of the few kinds of debt (tax other otherwise)
that cannot be cleared away by a bankruptcy judgment.
Ameripride Tax Group