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Why doesn't the employee have to pay the SUTA tax?

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Answered 2008-06-29 01:31:16

I think it is very simple. SUTA stands for State Unemployment Tax Authority. Why should an employee pay for the risk of being unemployed? Additionally, why should the lower income-earning entity (this being the employee, compared to the employer) pay for it?

The reason for SUTA (that being, unemployment) has not been caused directly by most employees anyway. Right there is a very good reason...

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Why is SUTA paid and when is SUTA paid?

SUTA is paid by an employer and is added to a fund that can be used by a qualifying employee in the event he/she is unemployed. The tax is determined by a percentage of a worker's salary. That total is capped at a specific annual pay level. Most employers consider SUTA a tax, but it was originally set up to be a type of insurance. SUTA is calculated when the pay is issued.

What is SUTA?

SUTA is an acronym for "State unemployment Tax Authority" and is used to describe unemployment tax which is a payroll tax. Employer in every state is required to pay tax for their employees

What is rate for MS SUTA tax?

In 2008, the Mississippi SUTA tax applies to the first $7000 in wages for each employee. The starting rate is 2.7% for a new business. After the first year, the rate depends on past experience-- it may vary between .4% and 5.4%.

Employers receive credit against their SUTA tax for thei FUTA contributions?

No, a credit is granted against their FUTA tax for their SUTA contributions.

Do you have to pay tax for your employee?

no only if you want thought

How much do you have to pay an employee before paying federal income tax?

There is no lower limit. You pay from dollar one. And just to clarify - the employer does NOT pay federal income tax on pay to an employee. He "withholds" income tax from the amount of pay he gives the employee (that is an estimate of what will be paid by the employee at tax filing according to the W-4 provided by the employee), and sends that to the IRS. Other than the cost of doing so, it costs the employer nothing. In fact, the entire reported payroll for the employee is probably the most acceptable tax deduction for the employer that there is! There may well be other payroll taxes or fee's - like FICA or unemployment, etc that he employer does pay out of his own funds.

Which payroll taxes are the employee's responsibility?

FICA tax, Futa and Suta taxes

What does PAYE tax mean?

Pay As You EarnA tax deducted at source by your employee before you get paid. A way for the government to get their tax without having to demand it.

How do you pay FICA when you change jobs?

If your an employee, it remains the employers responsibility to handle it in payroll withholding. If your not an employee, the self employment tax is part of your estimated payments and tax return calculation.

What is the employee website to view pay stubs for jpm chase employees?

The employee website to view pay stubs for JPM Chase employees is their official Pay and Personal Website. You can view your pay stubs and other tax information on there.

When and why would I need to pay medicare tax?

An employee in the United States that gets payment for services in the United States may have their wages applicable for Medicare tax. Usually, the employer tells the employee whether Medicare tax applies to him or her.

Can your wife get paid as an employee in your LLC?

Yes, she can. As long as she is actually employed with a contract and is actually working, and you pay the employee tax. Legally speaking.

Is employer pay federal tax for employee?

Wow...question makes no sense really. Pay is taxable, both by Feds and State, and most other places. Employer must withhold an estimate of the tax on that pay, and send it to the Government, into an account of YOURS. He doesn't pay the tax for you, it is coming from your pay.

Why an employee paid income tax?

so next time they don't have to pay it, its paying in advance

Do employees pay into unemployment tax?

No. The state's unemployment are funded through a payroll tax against the employers. No employee pays toward his benefits.

Does an employer make employee pay their business tax?

Employees do the work that generates the profits which allow their employer to pay taxes. But you will not find a deduction on the employees pay stub which reads, this amount deducted from your pay to cover your employer's business tax.

As a census employee if you filed exempt on your taxes do you have to pay them back?

When you complete your income tax return correctly after the end of of the year and if you end up with an income tax liability YES. You will have to pay the amount of income tax that are owed at that time.

What is state uemployment tax?

(SUTA) state unemployment tax is a part of the unemployed insurance. Click on the below related link for contact information for you state

Do you pay sales tax to employer?

It is the nature of employment that your employer pays you, you do not pay him or her. However, if you were to buy something from your employer, then you would pay the price of that item, including applicable sales tax. You would be acting as a customer, not as an employee, in that situation.

How much FICA take from Income Tax in 2013 in the US?

The FICA rate for employees of any business is 6.2% for the employee and 6.2% for the employer to each pay. The employee will have the tax withheld from their pay check and the employer will add their portion when a deposit is made monthly or more often depending on the amount owed by business. Some years ago the FICA (Social Security Tax) and Medicare Tax was separated. The Medicare tax is 1.45% for each the employer and employee in the same method. The only difference is that the Social Security tax is imposed on the the first $113,700 of income that an employee is paid during a calendar year and the Medicare tax is imposed on all income without a limit.

What is the benefits of employee paying professional tax?

benefit is that,when a person engage in a company as executive or manager he must be count as professional, so employer engage professional so thatswhy, a profession must be pay some tax through employer. in this tax employee benefits some tax as well as employer .

What withholding tax percentage is deducted depending on the amount of gross pay earned?

All tax the is withheld from your paycheck is based on your gross income for the pay period. The percentage for FICA for the employee is 6.2% and for Medicare tax is 1.45% of your gross income. Now the State and Federal Income tax withheld is based on your gross income but is not just a percentage. There are tax tables that give the amount to be withheld and it takes into account the filing status of the employee and the number of exemptions he/she claims on their W-4 form. The employee can also have additional flat amounts withheld in addition to the tax table amounts. The taxpayer can also claim exempt from Federal and/or State withholding if they did not owe any tax in the previous year and do not expect to have any tax due in the current year. The employee is completely responsible for these actions. The employer matches the FICA and Medicare Taxes that are withheld from the paycheck, so in effect the employer and employee each pay half of these taxes.

How much money can a child make without having to pay income tax?

it doesnt matter about age. If a child earns over £5000 a year then they still have to pay income tax regardless of age.

Can an employer make you pay for uniform?

Yes. If terms of your employement require you to wear a certain outfit or uniform the employee could be required to pay for this uniform. Because the employee had to pay for the uniform it can possibly used as a tax write off due to business needs.

Do Puerto Ricans pay US self-employment tax?

Puerto Ricans permanent residents pay ALL federal taxes except federal income tax on money earned on Puerto Rico from businesses located on Puerto Rico. The so-called "Self-employment tax" is the portion of social security and medicare tax payed by an employer on behalf of their employee. So if some one is their own employee (self-employed) they have to pay the business portion of these taxes as well as the employee's portion. This means that Puerto Ricans have to pay the so-called self-employment tax.