Employers’ Tax Responsibilities

Employers have specific tax responsibilities that include withholding federal, state, and local taxes from employees' paychecks, such as income tax and Social Security contributions. They must also pay their own share of Social Security and Medicare taxes, often called payroll taxes. Additionally, employers are responsible for reporting these taxes to the government and ensuring timely payments. They may also need to provide tax documents, like W-2 forms, to employees at the end of the tax year. Fulfilling these responsibilities helps ensure compliance with tax laws and supports social programs.