PAYROLL TAXES

  Withhold from your employee's paycheck . . .

Tax

Rate

 
Federal Income Tax
 
 

see IRS publication, Circular E, Employer's Tax Guide for withholding amounts

 
 
Indiana State Income Tax
 
 

3.4%

 
County / Local Tax
 
 
Social Security
 
 

6.2% on first $72,600 of income

 
 
Medicare
  
 

1.45%

 
   As an employer you must pay the following . . .

Tax

Rate

 
Social Security
 
  

6.2% on first $72,600 of income

 
 
Medicare
 
 

1.45%

 
 
Federal Unemployment Tax
(FUTA)
 
  

6.2% - 2.7%  =  3.5% of first $7,000
tax    state credit*

 
 
State Unemployment Tax
SUTA
 
 

2.7% (for first three years then based upon an experience rating) of first $7,000

 
 
Worker's Compensation
 
 

varies; check with a private insurance carrier for rates

 
* FUTA tax is calculated by taking the 6.2% federal tax minus your state SUTA tax which you are given as a credit. The maximum credit limit you are allowed to take is 5.4%.  This chart demonstrates a typical start-up which usually begins at 2.7% for SUTA.  If your rating assigned by the Dept. of Workforce Development is different, just use the rate as your credit.