Valor Payroll Solutions can help get your business registered with the necessary agencies so that you can stay in compliance with all state-mandated payroll taxes. Save time by outsourcing this important task to an expert.
State Income Tax/State Withholding Tax
Most states impose a state income tax, which is administered by the state’s Department of Revenue. State income tax, sometimes also referred to as state withholding tax, is calculated based on the employee’s pay and their state withholding form (or federal W-4 if no state-specific form exists) and withheld from their paycheck. Employers are then required to remit the money withheld and file tax returns. Each state dictates how often an employee must file and pay state income tax. The state will provide the employer’s payment and filing frequency when they provide the employer’s new account information. This is an employee paid tax.
State Unemployment Tax
This tax is an employer-paid tax which is often administered by the state’s Department of Labor. Each state has it’s own taxable wage base and assigns employers individual unemployment insurance tax rates based on their industry and rate experience. Both the taxable wage base and employer unemployment insurance tax rate can change each year.
If you live in any of the following states, you may need to register for an additional local, municipal or city tax – Alabama, California, Colorado, Delaware, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Missouri, New Jersey, New York, Ohio, Oregon, Pennsylvania, or West Virginia
Paid Family and Medical Leave Tax
If you live in any of the following states, you may need to register for a Paid Family Leave or Paid Family and Medical Leave tax account – California, Colorado, Connecticut, Massachusetts, New Jersey, New York, Oregon Rhode Island, or Washington, DC.
If you are…
A new business
Any business with employees is required by law to register for, report, and remit payroll taxes to avoid costly audits, penalties, and fines.
Expanding your business or opening a new office
Each state (and in some cases, cities and municipalities) can have its own unique requirements and
regulations for taxation and payroll reporting.
Hiring remote employees in a different state
In most cases, payroll taxes are dependent on where the work is physically being performed, regardless
of where the business is headquartered.
Registering on behalf of another client
CPAs, bookkeepers, payroll service bureaus, and financial advisors welcome! Save yourself from the headache of having to learn the ins and outs of payroll tax compliance.
…We can help!
Contact Valor Payroll Solutions today! Our payroll and tax experts will take care of the registration quickly and accurately so that you can get your business up and running in a new state as soon as possible.