Types of payroll taxes
Employee withholdings
Amounts withheld from employee paychecks:| Tax | Rate | Limit | Who pays |
|---|---|---|---|
| Federal Income Tax | Varies by W-4 | None | Employee |
| Social Security | 6.2% | $168,600 (2024) | Employee |
| Medicare | 1.45% | None | Employee |
| Additional Medicare | 0.9% | Over $200,000 | Employee |
| State Income Tax | Varies by state | Varies | Employee |
| Local Tax | Varies | Varies | Employee (some areas) |
Employer taxes
What you pay as the employer (not deducted from employee pay):| Tax | Rate | Limit |
|---|---|---|
| Social Security | 6.2% | $168,600 (2024) |
| Medicare | 1.45% | None |
| FUTA (Federal Unemployment) | 0.6% | $7,000 |
| SUTA (State Unemployment) | Varies | Varies |
How Pluvel handles taxes
Calculation
When you run payroll, Pluvel automatically:- Calculates federal income tax based on W-4
- Calculates FICA (Social Security + Medicare)
- Calculates state and local taxes
- Calculates employer taxes
Withholding
Taxes are withheld from employee paychecks and set aside. You see these amounts on the payroll summary.Deposits
We deposit taxes with the IRS and state agencies:- Federal taxes — Deposited per IRS schedule (semi-weekly or monthly)
- State taxes — Deposited per state requirements
Filing
Pluvel files required tax returns:| Form | Frequency | What it reports |
|---|---|---|
| 941 | Quarterly | Federal income tax, Social Security, Medicare |
| 940 | Annual | FUTA (federal unemployment) |
| State forms | Varies | State withholding, unemployment |
| W-2 | Annual | Employee wages and taxes |
Federal tax deposits
The IRS determines your deposit schedule based on tax liability:| Total taxes owed | Deposit schedule |
|---|---|
| Less than $50,000/year | Monthly |
| $50,000+/year | Semi-weekly |
| Less than $2,500/quarter | With quarterly return |
Quarterly Form 941
Every quarter, Pluvel files Form 941 reporting:- Total wages paid
- Federal income tax withheld
- Social Security and Medicare taxes
- Deposits made
| Quarter | Due date |
|---|---|
| Q1 (Jan-Mar) | April 30 |
| Q2 (Apr-Jun) | July 31 |
| Q3 (Jul-Sep) | October 31 |
| Q4 (Oct-Dec) | January 31 |
Annual Form 940
Form 940 reports federal unemployment tax (FUTA):- Due January 31
- Only on first $7,000 of each employee’s wages
- You may get a credit for state unemployment taxes paid
State payroll taxes
Each state has its own requirements:- States with income tax
- States without income tax
Most states require:
- State income tax withholding
- State unemployment (SUTA)
- Quarterly and annual returns
Viewing tax liabilities
See what you owe at any time:- Go to Payroll → Tax Filings
- View:
- Current liabilities
- Upcoming deposits
- Filed returns
- Payment history
Tax notices
If you receive a notice from the IRS or state:- Go to Payroll → Tax Filings
- Click Add Notice
- Upload the notice
- We’ll review and respond
Many notices are routine. Pluvel’s team can help interpret and respond to notices at no additional charge.
Common questions
What if I have employees in multiple states?
What if I have employees in multiple states?
You’ll need to withhold and pay taxes in each state where employees work. Pluvel handles multi-state payroll automatically — we register with each state and handle all filings.
What's the penalty for late deposits?
What's the penalty for late deposits?
IRS penalties range from 2% (1-5 days late) to 15% (10+ days late after first notice). We deposit on time to avoid these.
Can I make extra tax payments?
Can I make extra tax payments?
Yes. If you owe more than expected, you can make additional deposits through Pluvel to avoid penalties.
What about local taxes?
What about local taxes?
Some cities and counties have their own payroll taxes (like Philadelphia, New York City). We handle these for supported localities.
What’s next
Run payroll
Process payroll with automatic tax calculations.
Year-end filing
W-2s, 1099s, and year-end requirements.