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# How do you calculate the employer's portion of payroll taxes?

# What portion of the WACC calculation is impacted by taxes?

Answer The cost of debt is affected by taxes. The debt portion of the WACC is calculated as (total debt / total invested capital)*expected return on debt*(1 - t…ax rate). More info: http://en.wikipedia.org/wiki/WACC

# What is a payroll and how is it calculated?

Payroll In a functional accounting sense, "payroll" consists of an employer's activities related to the compensation it pays to its employees (payroll accounting, payroll tax… return preparation, benefits administration). However, the term "payroll" is also used broadly to refer to the dollar amount of an employer's liability for cash wages he must pay to his employees (as in "my company's total annual payroll is $100,000.") In this sense "payroll" refers to the employee compensation expense of a business. Payroll for a given employee is calculated as follows: 1. Start with Gross Pay For a salaried employee, gross pay equals the employee's flat salary per pay period. For an hourly employee, gross pay equals the number of hours worked multiplied by his hourly rate. If the employee works overtime, or has more than one hourly rate, multiply the applicable hours by those special rates. 2. Subtract deductions from gross pay to arrive at the employee's net pay. Some major deductions are: Income taxes - Federal, State and Local, if applicable (also called "withholding taxes") Social Security and Medicare tax Employee contributions to the state's unemployment or worker's compensation fund (if applicable) Deductions for employee benefits (Medical/401(k) plan contributions, etc.) Wage garnishments (often calculated as a percentage of gross salary) 3. After all deductions have been made, the amount left over is the employee's net pay. This process is easily automated, and there are a variety of software packages to handle payroll processing. There are also "widgets" and free websites that can be used in a pinch to calculate employee paychecks. Large companies will usually want to use payroll service bureaus, such as ADP. They can also handle the various payroll tax reporting and deposit requirements, which can be quite complex. There are different models for forecasting future payroll expense, but the simplest way is to multiply expected average headcount for the future period by the current average compensation rate, and then multiply the product by the average percent wage increase to be effective in the future period. But this assumes that the range of salaries is fairly evenly distributed among the current employees, and that future headcount will reflect a similar salary distribution range.

# What portion of the WACC calculation is impacted by the marginal taxes?

The WACC is determined from two separate calculations, one based on the cost of equity and the other on the cost of debt. The 'cost of debt' calculation can take into account …the tax rate. The whole calculation uses five variables, and the tax rate serves to reduce the 'cost of debt' percentage. The bigger the tax rate, the greater the impact on the cost of debt. The lower the tax rate, the smaller the impact. However, as there are five variables in the whole calculation, and the sums, magnitude and significance will differ from company to company, the only way to determine the impact of tax rates (marginal or otherwise) in a particular case is to do comparative calculations of WACC, one with, and the other without the tax rate element. By calculating the difference between the two results, one can determine the precise impact/significance of including/excluding tax considerations when calculating WACC for a particular corporate scenario. In a company with a large cost of debt and a small cost of equity, the effect of the rate of tax (in the WACC calculation) will be higher than that in a company with a high cost of equity and a low cost of debt. In other words, the relative weighting of the 'cost of debt' against the 'cost of equity' is an important influencing element in the WACC computation. N.B. When calculating WACC, the 'after-tax' percentage (i.e. with due allowance for the tax rate,) is generally considered to be a better indicator of the true WACC for a particular company than omitting tax liabilities entirely from the calculations.

# How do I find my employer's Tax ID Number?

If you have a W-2 or 1099 from your employer, it will be on there.

# What are payroll taxes?

The IRS payroll tax can be defined as the tax that an employerneeds to pay, precisely on the salaries disbursed to the employees.Payroll tax levied by the IRS has many compone…nts such as federalincome tax, social security and medicare tax and federalunemployment tax. Visit : Myirsteam.com to know more

# How do i find my employer's tax id number if i do not have a w-2?

ask the employer

# What is payroll tax?

Payroll tax is the tax that is collected from employers to pay for government benefits for their staff. These include programs like unemployment, disability and social sec…urity.

# Meaning of payroll and how is it calculated in payroll?

A payroll is, in layman's terms, the out goings a company has to spend on its staff or human resources. These are often very complicated and difficult to figure out due to fac…tors such as staff illness, holiday pay and leaves of absence. It is important to make sure your pay roll is correctly administered as payroll's are used to help figure out company and personal taxes. Inability to keep these records properly can lead to big fines.

# How is payroll calculated?

Payroll is calculated by taking how many hours the employee worked and multiplying it by how much the employee gets paid per hour. Any money being withheld for taxes, insuranc…e, retirement plans, etc should be subtracted from the employees pay. Most electronic time clocks that monitor when employees check in and out can be connected with payroll software to automatically calculate the payroll based on the employee's time worked.

# What is payroll taxes?

Payroll taxes are the taxes witheld by an employer from an employee's paycheck which covers the appropriate amount of federal and state taxes as well as FICA tax (also known a…s Social Security). These taxes are held in Trust and submited on behalf of the employee to the various entities on a quarterly basis. It is this amount that is determined by the amount of deductions an employee claims on their W-4 Form. If too much tax is collected from an employee they will receive a refund at the end of the year when they file a tax return. If not enough taxes are paid through this process there will be a debt owed to the IRS and/or state on the tax returns at the end of the year.

# How do you calculate payroll taxes?

With a calculator.

# What is a Employer's tax guide?

Here is the federal Employer's Tax Guide: http://www.irs.gov/pub/irs-pdf/p15.pdf Your state may also have a tax guide.

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# What it payroll company does not pay payroll taxes?

Has this happened, or are you just curious? By law the payroll service has to pay the taxes to the government, that are with held.

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# How are employer's unemployment taxes computed in Nevada?

As of Oct. 2010, employers pay taxes on the first $26,000 of each employee's wages at the average rate of 1.33%. The rate is adjusted from a low of 1/4 0f 1% (0.25%) to a high… of 5.4 % based on the experience factor (frequency they lay workers off). Presently 56% of employers pay the minimum 0.25%. The taxes paid by the employers cover the first 26 weeks of unemployment, and of the present 99 week eligibility that some workers are entitled to, the Federal government pays for the remaining 73 weeks.

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# How do you calculate semi monthly payroll?

If payday is the 5th and the 20th then the pay period should end the 15th and the 31st of the month

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# Does the entry to record weekly payroll tax liabilities reduce assets and equity portions of the accounting equation?

yes

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# Where is it possible to find a payroll tax calculator?

Payroll tax calculators help one determine one's take-home income after taxes have been paid. The calculators can frequently be found on government revenue office websites.