Employer Tax and Withholding Requirements

If an employer-employee relationship exists, the PTA, as employer, must comply with the following:

FICA: The PTA must withhold from each employee’s wages the proper Social Security and Medicare amounts, paying to the federal government that sum on behalf of each employee. As employer, PTA is required to pay a matching sum as well. The amounts that an employer must withhold from each employee and contribute are listed in the IRS Publication 15, Circular E, Employer’s Tax Guide.

Federal and State Income Tax: The PTA must administer, collect, account for, and pay to the federal and state governments specified amounts of taxes that must be withheld from each employee’s wages. This process requires PTA to obtain W-4 statements from each employee. (Federal Tax withholding schedules: IRS Publication 15. State Tax withholding schedules: Circular E, Employer’s Tax Guide, and California Employer’s Tax Guide are available from the California Employment Development Department.)

SDI (State Disability Insurance): The PTA must withhold and pay state disability insurance, including California paid Family Leave Program withholding. Rates are found in the California Employer’s Tax Guide.

SUI (State Unemployment Insurance) and ETT (Employment Training Tax): The PTA must pay state unemployment insurance and employment training tax. Rates are found in the California Employer’s Tax Guide.

Semiweekly, monthly, or quarterly payment of withholding to the IRS and California Employment Development Department (EDD) are required. For further information, consult IRS Publication 15, Circular E, Employer’s Tax Guide, Publication 509, Tax Calendars and the California Employer’s Tax Guide, Employer’s Guide to Unemployment Insurance Code of California, available from the California EDD.

Form W-2: This form must be completed by the employer and issued annually to every employee before January 31. The Form W-2 may be downloaded from www.irs.gov. Each employee should complete a Request for Taxpayer Identification Number Form W-9.

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