What taxes does an employer have to handle for employees?
Employers in the U.S. must handle multiple categories of payroll-related taxes: federal income tax withholding, FICA (Social Security and Medicare), federal unemployment (FUTA), state income tax withholding, state unemployment (SUTA), state disability insurance in some states, and various local taxes. Employers withhold employee portions, pay employer portions, remit to agencies on schedule, and report annually on W-2 and 1099 forms.