IRS Requirements for Employees

From the Internal Revenue Service

Tax and Wage Reporting

If you have employees, you are responsible for several federal, state, and local taxes. Some of these taxes apply to employers, some are levied upon employees, and some

• Federal income tax withholding
• Social security and Medicare taxes
• Federal unemployment tax act (FUTA) tax

In addition, you are responsible for timely payment or deposit of the employment taxes withheld from employees, your matching share of social security and Medicare taxes, and any federal unemployment tax act (FUTA) tax. The employer's share of the social security, Medicare, and all of the FUTA tax deposits are deductible. Be careful to only deduct the employer's share of the social security and Medicare taxes. Do not deduct gross wages (before deductions for income tax withholding, social security, and Medicare) plus the employee's share of social security and Medicare. That would be deducting social security and Medicare twice. Either deduct gross wages plus the employer's share of social security and Medicare, or net wages plus all payments for social security and Medicare. For further information about your federal requirements with regard to employees, refer to the Reporting section or refer to Publication 15, Circular E, Employer's Tax Guide and Publication 15-A, Employer's Supplemental Tax Guide.

Minimum Wage

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards that affect over 100 million full- and part-time workers in the private sector and in federal, state and local governments. Please refer to the Department of Labor's Employment Law Guide Minimum Wage and Overtime Pay.

New Hire Reporting

New Hire Reporting is the process by which employers report information on newly hired employees to a designated state agency shortly after the date of hire. For more information, please refer to the Federal Parent Locator Service's document Three Things Every Employer Must Know About Child Support (PDF).

Poster Requirements

Some of the statutes and regulations enforced by agencies within the Department of Labor (DOL) require that notices be posted in the workplace. The DOL Poster Page provides a list of the required posters and links to information about them. For a summary of the requirements, refer to Workplace Poster Requirements for Small Businesses and Other Employers.