What employee taxes need to be withheld each pay period?
Your employee’s taxes usually range from 15-20% of gross wages. These include: • Half of Social Security & Medicare (7.65%) • Federal income taxes (based on the number of allowances chosen on Form W-4) • State income taxes (if applicable) Note: By law, employers are required to withhold Social Security and Medicare taxes from their employee’s salary each pay period. Withholding income taxes is optional, but it’s highly recommended so that your employee does not get surprised with a large tax obligation at year end.
