What is the difference between “employee” payroll taxes and “employer” payroll taxes?

The term “payroll taxes” refers to any taxes due as a result of wages being paid out, and both the employee and the employer have their own share of these taxes. “Employee” payroll taxes are withheld from the employee’s paycheck, while “employer” payroll taxes are due from the employer based on the wages they are paying out. The employer’s share of payroll taxes is a cost to the employer on top of the gross wages they are paying to the employee, they are not deducted from the employee’s pay.

Some payroll taxes are paid into by both the employee and employer, as a shared cost, while other payroll taxes are only due from one or the other. Additionally, some taxes are due as a percentage of wages, while others are flat amounts based on all the employment and payment factors. Please consult a tax specialist or your payroll house to help determine actual amounts.

What are the employer payroll taxes?

Taxes vary by work location and other factors, but employer payroll taxes generally include:

  • Social Security
  • Medicare
  • SUI – State Unemployment
  • FUI – Federal Unemployment

What are the employee payroll taxes?

Taxes vary by work location and the employee’s tax information, but employee payroll taxes generally include:

  • Federal Withholding
  • State Withholding
  • Social Security
  • Medicare

Many States, cities, and counties have their own payroll taxes due, as well as their own payroll tax forms—please contact your payroll coordinator if you have any questions for your specific project.

Do I have to send out W-2’s at the end of the year?

Not when using ABS as your entertainment payroll company. Any employee paid through ABS will have their W-2 sent to them at the end of the year, and any loan-out paid through ABS will be issued a 1099 form. As the employer-of-record payroll company, ABS is responsible for all payroll tax reporting and filing on the workers we pay out.