> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pluvel.com/llms.txt
> Use this file to discover all available pages before exploring further.

# 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:

<Tabs>
  <Tab title="States with income tax">
    Most states require:

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

    Rates and thresholds vary by state.
  </Tab>

  <Tab title="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.
  </Tab>
</Tabs>

## 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

<Info>
  Many notices are routine. Pluvel's team can help interpret and respond to notices at no additional charge.
</Info>

## Common questions

<AccordionGroup>
  <Accordion title="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.
  </Accordion>

  <Accordion title="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.
  </Accordion>

  <Accordion title="Can I make extra tax payments?">
    Yes. If you owe more than expected, you can make additional deposits through Pluvel to avoid penalties.
  </Accordion>

  <Accordion title="What about local taxes?">
    Some cities and counties have their own payroll taxes (like Philadelphia, New York City). We handle these for supported localities.
  </Accordion>
</AccordionGroup>

## What's next

<CardGroup cols={2}>
  <Card title="Run payroll" icon="money-check-dollar" href="/guides/payroll/run-payroll">
    Process payroll with automatic tax calculations.
  </Card>

  <Card title="Year-end filing" icon="calendar" href="/guides/payroll/year-end">
    W-2s, 1099s, and year-end requirements.
  </Card>
</CardGroup>