Fiscal Manager Training
Module 1 Overview
Areas of Payroll Requirements
There are four (4) basic focuses for payroll requirements regarding employer and employee taxes and liabilities. They are
- Federal
- State
- Unemployment Insurance/Tax
- Workers Compensation
Each one of these areas has specific requirements and guidelines that MUST be met when employing personal care attendants (household employees). These requirements and guidelines are set forth in publications and other written documents. Each area will be addressed specifically.
- Federal – The Federal payroll requirements are governed by the U.S. Department of the Treasury, Internal Revenue Service. The Social Security Administration also plays a role in Federal taxes.
- State – The State payroll requirements are governed by the Kansas Department of Revenue.
- Unemployment Insurance/Tax – Unemployment Insurance is an employer tax or liability that is governed under both Federal and State law. The Federal Unemployment Tax Act and the Kansas Employment Security Law provides regulations and guidance to employers for unemployment insurance.
- Workers Compensation – Workers’ Compensation Insurance is insurance coverage for injured employees that is funded by the employer and is governed by State Law. Workers compensation is administered by the Kansas Department of Labor.
Section 1 of Module I will focus on IRS Publication 926 Household Employers Tax Guide, (Rev. December 2006).
When you employ a personal care attendant to provide services to you in your own home, you become a household employer. When you successfully complete this course and become a household employer you will need to get a copy of the current years IRS Publication 926, Household Employers Tax Guide. You can get this publication three (3) ways, by going to the IRS website and downloading the publication, calling the IRS and asking that the publication be mailed to you, or faxing the IRS with your request to have the publication mailed to you. You can find the website address and phone and fax numbers to get the publication in the resources section of this training.
Publication 926, Household Employer Tax Guide issued by IRS will help you in understanding when and how to pay Federal employment taxes such as: Social Security tax, Medicare tax, Federal Unemployment tax, and Federal income tax withholding. The publication explains how to figure, pay, and report these taxes and what records you need to keep.
For learning and testing purposes, this training will be using the 2006 version of Publication 926. To successfully complete the training section covering this publication you must understand the various contents of the publication and be able to put the information into practice.
Important: The Publication 926, Household Employers Tax Guide is published for each tax year that covers January 1st through December 31st. It is very important that you use the publication for the year that you employ and pay wages to household employees. You should acquire an updated publication each year you employ your household employee and review for any changes!If Tax Laws or Rules change and you do not know them and follow them, you could make errors in the amount of taxes you withhold and pay. These errors could result in you paying stiff penalties and interest on any underpayments.
Go to Section 1 : Section 2 : Section 3 : Section 4