Employer Tax Contributions

Tax Type	Rate (Employer Share)	Base
Social Security	6.2%	First $176,100 of employee wages
Medicare	1.45%	All employee wages (no wage base limit)
Additional Medicare Tax	0.9% (Employee only; employer does not match)	Employee wages over $200,000
FUTA (Federal Unemployment Tax Act)	6.0% (can be reduced to 0.6% with state credit)	First $7,000 of each employee's wages

Filing & Compliance

• Form 941 (Employer's Quarterly Federal Tax Return): Due April 30 (Q1), July 31 (Q2), October 31 (Q3), January 31 (Q4).
• Forms W-2 (Wage and Tax Statement) & 1099-NEC (Nonemployee Compensation): Furnish to recipients and file with SSA/IRS by January 31.
• Form 940 (Employer's Annual Federal Unemployment Tax Return): Due January 31; extendable to February 10 if all FUTA taxes are deposited on time.

In the United States, employers are responsible for withholding various taxes from employee wages, including federal income tax, Social Security tax, Medicare tax, and potentially state and local taxes.

Federal Income Tax

Federal income tax is determined by the employee's W-4 form, which indicates their filing status and withholding allowances. The amount withheld depends on the employee's earnings and the W-4 elections.

Social Security and Medicare Taxes (FICA)

• Social Security Tax: For 2025, the Social Security tax rate is 6.2% for both the employee and employer, applied to the first $176,100 of wages. This results in a maximum employee contribution of $10,918.20.
• Medicare Tax: The Medicare tax rate is 1.45% for both employee and employer, with no wage base limit.
• Additional Medicare Tax: An additional 0.9% Medicare tax applies to employee wages exceeding $200,000 in a calendar year. There is no employer portion for this additional tax.

Federal Unemployment Tax (FUTA)

FUTA is paid by the employer only, at a rate of 0.6% on the first $7,000 of each employee's wages.

State and Local Taxes

Many states and localities impose income taxes, which employers are responsible for withholding. The rates and rules vary by jurisdiction.

Estimated Taxes

Individuals with income not subject to withholding, such as self-employment income, may be required to pay estimated taxes quarterly. For 2025, the due dates are April 15, June 15, September 15, and January 15, 2026. Penalties may apply for underpayment.

Standard Deduction

For the 2025 tax year, the standard deduction amounts are:

• Single filers: $15,000
• Married filing jointly: $30,000
• Head of household: $22,500

An additional standard deduction is available for individuals over 65 or blind.

Other Deductions

Taxpayers can itemize deductions instead of taking the standard deduction if their itemized deductions exceed the standard deduction amount. Common itemized deductions include:

• Qualified residence interest
• State and local taxes (capped at $10,000)
• Medical expenses exceeding 7.5% of adjusted gross income
• Charitable contributions

Tax Filing Deadline

The deadline for filing 2024 tax returns is April 15, 2025. A six-month extension can be requested, pushing the deadline to October 15, 2025.

Remember, this information is current as of February 5, 2025, and is subject to change. Consult a tax professional for personalized advice.