How do I handle payroll taxes for a small business?

woman at computer with checklist and pen

Handling payroll taxes for a small business involves several key steps. First, accurately calculate and withhold federal, state, and local income taxes, along with Social Security and Medicare taxes, from employees’ paychecks. Next, ensure timely submission of tax deposits to the appropriate government agencies, and file the necessary quarterly and annual tax forms. Consider outsourcing to a payroll service provider to streamline these processes and stay compliant with tax regulations, ultimately easing the burden of payroll tax management for a small business.