You are here:

Tax Law (Questions About Taxes)/how to run payroll, pay payroll taxes

Advertisement


Question
Hello Mr. Stancil,

Thank you for your time! I keep the books for my wife's new physical therapy business. She has hired an employee. All of the forms for this hire are filled out with federal and state. What I need to know now is how to deduct the appropriate taxes from his pay check.

I need to know how to calculate these deductions. I know there are companies out there that will run payroll for you, but to me it seems like I should be able to learn how to do this myself and save my wife's business some money. Can you recommend some book or website that will address this question specifically?

Thank you very much,
Stu Chuang Matthews
Office Manager
Alive Physical Therapy, PC
Nevada City, CA

Answer
Stuart,

Thanks for your question.

Just get a copy of Circular E from the IRS. It has withholding tables and instructions.  You will also need to get a set of withholding tables from the California Franchise Tax Board for state withholding.

If you do no already have them you need to apply to the IRS for a Employer Tax ID number and also apply to the state for a state tax number.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

All Answers


Answers by Expert:


Ask Experts

Volunteer


John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

©2016 About.com. All rights reserved.