Manhattan, New York City

Employment Taxes

 
Federal Income Tax and Social Security and Medicare Taxes
You generally must withhold federal income tax from your employees' wages. You withhold part of Social Security and Medicare taxes from your employees' wages and you pay a matching amount yourself. To figure how much to withhold from each wage payment, use the employee's Form W-4.

Federal Unemployment (FUTA) Tax
You report and pay FUTA tax separately from Federal Income tax, and Social Security and Medicare taxes. You pay FUTA tax only from your own funds. Employees do not pay this tax or have it withheld from their pay.

Self-Employment Tax

Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners.

Depositing Employment Taxes
In general, you must deposit income tax withheld, both the employer and employee Social Security and Medicare taxes (minus any advance EIC payments), and FUTA tax by depositing electronically, mailing or delivering a check, money order, or cash to a financial institution that is an authorized depositary for federal taxes using Form 8109-B. You can also make your deposits using the Electronic Federal Tax Payment System (EFTPS). Some taxpayers are required to deposit using the EFTPS.

Reporting Employment Taxes
In general, employers are responsible to report federal Income Taxes, Social Security, and Medicare taxes on Form 941, Employer's Quarterly Federal Tax Return and Instructions, or Form 943, Employer's Annual Federal Tax Return for Agriculture Employees and Instructions (For use by farm employers).

Note: Employers who have an employment tax liability of $1,000 or less for the year may file Form 944, Employer’s Annual Federal Tax Return instead of Form 941, Employer’s Quarterly Federal Tax Return. Eligible taxpayers will be notified by mail.

e-file for Business and Self-Employed Taxpayers
Whether you're a business, big or small, or are self-employed you'll find an e-file for business filing option that meets your needs. Use IRS e-file for Employment Tax Returns, Information Returns, Partnerships, Corporations, Estates & Trusts, plus Exempt Organizations.

Preparing and Filing Form W-2
At the end of the year, the employer must complete Form W-2, Wage and Tax Statement (PDF) to report wages, tips and other compensation paid to an employee. A copy of this form must be given to the employee by January 31st after the end of the year. You must also send a copy of the W-2 to the Social Security Administration (SSA). Employers can prepare and file up to 20 W-2s at a time at the Social Security Administration’s Web site. Using SSA’s online W-2 filing, employers can also print out all the necessary copies of the W-2 for their employees, state taxing agencies, etc.

Correcting/Adjusting Employment Taxes
If correcting employment tax errors on previously filed employment tax returns is required, refer to Correcting Employment Taxes.

Independent Contractor (Self-Employed) or Employee?
Which workers are considered employees? Before you can know how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services.

Certain Taxpayers May Now File Their Employment Taxes Annually
To reduce burden for certain small business taxpayers, employers who have an Employment Tax liability of $1,000 or less for the year will now file Form 944, Employer’s Annual Federal Tax Return, instead of Form 941, Employer’s Quarterly Federal Tax Return. Eligible taxpayers will be notified by mail.

Combined Annual Wage Reporting (CAWR)
Combined Annual Wage Reporting (CAWR) is a Document Matching Program that compares the Employee Wage Information reported by the employer to the Internal Revenue Service (IRS) and the Social Security Administration (SSA). If the amounts reported to the IRS do not match those from SSA, you may receive a notice asking for the reason for the discrepancy. If you do not respond timely, IRS may compute the additional taxes and/or penalties due and send you a bill.
 
Source:

www.globalemployeebenefits.info

Bank Accounts and Credit Cards

The city's eight largest banks:

When deciding which one to choose, consider branch locations and hours of operation. Some banks are now open seven days a week.

 - Citibank,
  www.citybank.com
 - Commerce Bank,
  www.commerceonline.com
 - JP Morgan Chase & Co,
  www.chase.com
 - Valley Nartonal Bank,
  www.valleynationalbank.com
 - Apple Bank,
  www.theapplebank.com
 - Bank of America,
  www.bankofamerica.com
 - HSBC,
  www.hsbc.com
 - Washington Mutual,
  www.wamu.com

Credit Cards:

Many cards now offer various "rewards" as incentives to use them, the common being frequent flyer miles. Shop around for the one that best suits your needs.

- American Express, once famous for issuing
  charge cards that must be paid off every
  month, American Express now offers nearly
  two dozen different cards, including credit
  cards and airline affinity cards that accumulate
  frequent-fler miles. With the exception of a
  student card, all Amex cards have minimum
  income requirements, and most charge
  annual fees.

- Diner's Club, with annual fees and income
  requirements, the Diner's Club card is
  accepted mainly in travel and hospitality
  circles; cardholders have access to special
  amenities at most major airports.

- Discover / Novus, discover cards and affiliated
  Novus/Private Issue cards offer an annual
  rebate based on the amount you charge, and
  some plans let you accumulate credit at
  various hotels or retail chains.

- VISA and MasterCard, can be obtained from a
  variety of financial service organizations,
  usually banks. Interest rates vary, annual fees
  may even be waived, and many cards offer
  frequent flyer miles. It pays to shop around,
  especially if you don't pay off your balance
  every month.

- Department store credit cards, can offer
  advaantages over other forms of payment:
  advance notice of sales, mail or phone orders,
  no annual fee. Accounts may be approved
  instantly upon application. Marcy's and
  Bloomingdales cards are popular among New
  York shopper.