Understanding payroll taxes

What taxes you pay and when Pluvel files them.

Payroll taxes are confusing. Employee-paid vs employer-paid. FICA vs FUTA vs SUTA. Quarterly filings, annual filings, deposit schedules. Miss a deadline or make a math error? Penalties add up fast.

Here’s what you need to know: Pluvel calculates all of this automatically, withholds the right amounts, makes the deposits, and files the returns. But it helps to understand what’s happening behind the scenes.

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:

1. Calculates federal income tax based on W-4
2. Calculates FICA (Social Security + Medicare)
3. Calculates state and local taxes
4. 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

Pluvel tracks your schedule and makes deposits on time.

Quarterly Form 941

Every quarter, Pluvel files Form 941 reporting:

• Total wages paid
• Federal income tax withheld
• Social Security and Medicare taxes
• Deposits made

Deadlines:

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

Most states require:

• State income tax withholding
• State unemployment (SUTA)
• Quarterly and annual returns

Rates and thresholds vary by state.

States without income tax

These states have no state income tax:

• Alaska, Florida, Nevada, New Hampshire (wages only), South Dakota, Tennessee, Texas, Washington, Wyoming

Still have state unemployment requirements.

Viewing tax liabilities

See what you owe at any time:

1. Go to Payroll → Tax Filings
2. View:
   • Current liabilities
   • Upcoming deposits
   • Filed returns
   • Payment history

Tax notices

If you receive a notice from the IRS or state:

1. Go to Payroll → Tax Filings
2. Click Add Notice
3. Upload the notice
4. 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?

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?

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?

Yes. If you owe more than expected, you can make additional deposits through Pluvel to avoid penalties.

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.