The Internal Revenue Service (IRS) will determine if hired workers qualify as independent contractors or employees by evaluating your SS-8 Form. Instructions for completing the SS-8 Form are available online.
For employees, you are required to withhold the following taxes from each paycheck:
Income taxes
Social Security taxes
Medicare taxes
Unemployment taxes
The withheld funds must be submitted to the IRS by the specified due dates. If you are self-employed, you must make quarterly estimated tax deposits based on your salary. Consult your accountant on the proper way to fulfill this requirement.
You will need the following forms to comply with IRS regulations:
Publication 15 (also known as Circular E) Employer’s Tax Guide
W-2
W-4
1099
941 Quarterly Federal Tax Return
940 Employer’s Annual Federal Unemployment (FUTA) Tax Return
Official IRS forms can be ordered by clicking here or by calling 1-800-TAX-FORM. Make sure to carefully read all instructions before filing any of the above forms. If you would like to file online, please be sure to read the e-Filing instructions for each form.
Internal Revenue Service
Tax Info
The Federal Tax ID Number (EIN) is required for all businesses with employees and is obtained by filing the IRS SS-4 Form. Apply for your Federal Tax ID Number online at www.irs.gov. Tip: enter “EIN” in the search box and follow instructions for applying for an EIN online.
Federal Tax ID Number or Employer Identification Number (EIN)
The PA Tax ID Number is required to pay a variety of state business taxes, including sales tax, employee withholdings and filing your business income tax return. Apply for your PA Tax ID Number by completing form PA-100 online at www.revenue.state.pa.us.
Pennsylvania Tax ID Number (or Sales Tax Number)
42
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