Payroll Tax Guides: Federal, State, County and City

Plain-English payroll guides: deposits, Forms 941 and 940, W-2s, 1099s, state unemployment, withholding, local taxes, new hires and penalties.

Payroll looks simple until you have to get it right. Every pay date triggers federal income tax withholding, Social Security and Medicare taxes, state withholding, state unemployment tax, and in many places a city or county tax on top. Each has its own registration, deposit schedule, return and penalty regime, and the penalties for late deposits start quickly and do not shrink.

These guides explain how payroll taxes work in the United States, from the federal deposit rules and quarterly Form 941 to state unemployment insurance, local payroll taxes at the city and county level, multi-state employees, contractor classification and the penalties that apply when something goes wrong.

State rules differ widely, so pair these guides with the page for your state in our state and local tax section. If you would rather not do payroll yourself, see our payroll services.

Filter this list

Federal payroll

Deposits, quarterly and annual returns, wages and special cases.

Payroll Tax Basics for Employers

The federal, state and local taxes every employer withholds, matches, deposits and reports, explained with 2026 rates.

Federal Payroll Tax Deposits

Monthly or semiweekly deposits, the lookback test, the $100,000 next-day rule and how to pay the IRS electronically.

Form 941 Quarterly Payroll Tax Return

Who files Form 941, what each line shows, due dates through 2027, corrections and when Form 944 applies instead.

Form 940 and Federal Unemployment Tax (FUTA)

The FUTA rate and wage base, the state credit that cuts it to 0.6%, credit reduction states and Form 940 deadlines.

Forms W-2 and W-3 Filing Guide

Deadlines, the 10-return e-file rule, new 2026 boxes for tips and overtime, W-2c corrections and penalty tiers.

Tips and Overtime Reporting for Employers

How the 2025 tax law's tip and overtime deductions change W-2 reporting, withholding and recordkeeping starting in 2026.

Fringe Benefits and Taxable Wages

Which perks count as taxable wages, the 2026 exclusion limits and how to withhold and report taxable fringe benefits.

Payroll for S Corporation Owners

Why owner-employees of an S corporation need payroll, how reasonable pay is judged and how health insurance is reported.

State and local payroll

Unemployment insurance, withholding, city and county taxes, multi-state employees and paid leave.

State Unemployment Insurance Tax (SUTA)

How state unemployment tax rates and wage bases are set, how new employers start and how it ties to the FUTA credit.

State Income Tax Withholding for Employers

How to register, collect state withholding forms, deposit on time and handle reciprocity when employees cross state lines.

Local Payroll Taxes: City and County

City, county and transit payroll taxes in several states, who administers them and the traps for out-of-town employers.

Multi-State Payroll for Remote and Traveling Employees

How to handle payroll when employees live in one state and work in another, from reciprocity to registrations.

State Paid Family and Medical Leave for Employers

Which states have paid family and medical leave programs, what employers collect and report and how Illinois differs.

Hiring and classification

Employees versus contractors, new hires, household employees, workers' compensation and I-9s.

Employee vs. Independent Contractor

The IRS three-category test, state ABC tests, how to request a ruling and what misclassification can cost.

Paying Contractors and Filing Form 1099-NEC

Collecting Form W-9, who gets a 1099-NEC, the $2,000 threshold for 2026 payments, due dates and backup withholding.

New Hire Reporting for Employers

The 20-day rule, the data you must report, how multistate employers can simplify and what Illinois requires.

Household Employer and Nanny Tax Guide

When a nanny or caregiver is your employee, the 2026 thresholds, how to file Schedule H and what records to keep.

Workers' Compensation Basics for Employers

How workers' compensation works, how premiums connect to payroll and why Illinois treats missing coverage as a serious violation.

Form I-9 and E-Verify for Employers

Form I-9 deadlines, document rules, retention periods and how E-Verify fits in for employers.

Compliance and deadlines

Penalties, relief and a calendar of payroll due dates.

Payroll Tax Penalties and Penalty Relief

Payroll tax penalty types and rates, the trust fund recovery penalty and how first-time and automatic relief work.

Payroll Deadlines Calendar Through 2027

Payroll due dates from November 2026 through 2027, shifted for weekends and holidays, including deposit dates.

Want payroll handled correctly?

Federal, state, county and city payroll taxes, filed on time.

Schedule a consultation