Social Security Tax: The employer pays 6.2% on each employee’s wages up to $127,200.
Medicare Tax: The employer pays 1.45% on ALL wages for each employee.
Federal Unemployment Tax Act (FUTA): The employer pays 6.0% on the first $7,000 of each employee’s wages
State Unemployment: In Missouri employers are subject to unemployment taxes. The percent varies and is applied to the first $13,000 of wages per employee.
Other expenses: Include workers’ compensation insurance, payroll processing, health insurance, retirement benefits, and other fringe benefits.
These expenses can mean an additional 10% – 20% of cost on top of employee wages. For small businesses this can be A LOT!
Using a service like Haas Accounting Services can provide you efficient reliable service without breaking the bank.