ENTERTAINMENT PAYROLL FAQ'S

Educate and inform yourself in the basics of payroll

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Employment
& Payroll
Taxes


What is the difference between "Employee" Payroll Taxes that are withheld from the employees' checks and "Employer" Payroll Taxes that are paid by the Production Company (the "Employer")?

 

The term "Payroll Tax" refers to two different sets of taxes for which two separate parties are responsible. The first is the Employee Payroll Tax that is withheld by an employer from an employee's paycheck, and then reported and turned in by the employer to the appropriate taxing jurisdiction. The second is the Employer Payroll Tax that is paid from the employer's own funds, due to the employment of a worker, and can either be a fixed charge or be proportionately linked to an employee's pay.

 

In most instances, the employer is responsible for paying the employers share of Social Security, Medicare, as well as state and federal unemployment taxes. In some jurisdictions, local taxes can also be charged.

 

Please note that both the employee AND the employer pay into the social security and Medicare system.  The government collects revenue from BOTH parties.  Don’t be fooled into thinking that this is something that only the employee has to pay for.

 

What are the Employer Payroll Taxes?

 

The Employer Payroll Taxes generally contain, but are not limited to:

 

  • Social Security
  • Medicare
  • SUI – State Unemployment
  • FUI – Federal Unemployment

What are the withheld Employee Payroll Taxes?

 

  • Federal Withholding
  • State Withholding
  • Social Security
  • Medicare

Some states (such as California) also deduct SDI (State Disability Insurance). Other locations such as New York City withhold a "Resident" tax.

 

Check with your ABS Payroll Account Manager for information about your specific location.

 

Do I have to send out W-2s at the end of the year?

 

Not if you choose ABS as your payroll company. Any employee paid through ABS will have their W-2 sent to them at the end of the year by ABS Payroll