 In this presentation, we will calculate employer taxes. We're here in our payroll register. It's important to note that the employer taxes won't necessarily be on the payroll register because they're not employee taxes. However, the calculations can support accounting instruction by clicking the link below, giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files, and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. Be based on the information from the register given the fact that they're based on employee taxes. So the register really kind of ends here. Here's the net pay for the register and a scroll to the left to pick up all the data that we're at. We currently have four employees. We've got the filings that is we've got the the hours and the wages. And then we finally got the total earnings here. And this is what where we need to start in order to calculate our taxes. We've got total earnings. We've got OASDI earnings which could differ based on the cap at $128,400. We've got the FUTA that has a cap of $7,000. SUTA in this problem has a cap of $8,000. And then we've got the deductions from the check, which includes OASDI and HI, which will be employer taxes as well. This however is the employee portion. Then we've got federal income tax, FIT, and then the insurance on the voluntary deductions from the net pay to get to the net pay. Now we're going to calculate the employer portion of our employer taxes, which will include for us the OASDI, which is Social Security Employer Portion, the Employer Portion of Medicare, and then FUTA and SUTA. FUTA for sure is just an employee tax and not an employee tax. SUTA is typically an employer tax, but could have an employee portion depending on the state. Okay, so we're going to go in here and just calculate these same calculations. Now the Social Security will remain the same. It'll be the same number, but we want to recalculate it. And that'll give us kind of a double check on the Social Security to make sure it's calculated correctly to see that it's the same number here. So this equals, we're going to go to the left, and we're going to pick up Social Security wages. It's going to be different than the total wages because it could, well it could be different. It's not in this problem. It could be if there was something like a cafeteria plan. We're going to multiply that times 0.062. And that'll be our wages. We'll do it again here. So I know it's hard to see it when you, we're on the edge of the screen there. So it's this number in the OASDI wages and then multiply times 0.062, which is 6.2 percent. Enter. We'll do it two more times. We're going to say this equals the OASDI wages times 0.062. Enter. One more time, we're going to say this equals scrolling over to the OASDI wages times 0.062. Enter. Then we'll sum this up with our sum function equals the sum of double clicking the sum function, highlighting that row. And there's our Employee Ur Taxes, which should match what's on the employee side. So they're not the same thing. These are coming out of the check. These are Employee Ur Taxes. Now we'll do the HI or Medicare. Same type of idea. We're going to say this equals and we're going to scroll over and we're going to pick up total wages this time because there's no difference in this calculation of total wages and HI given there's no cafeteria plan and there's no cap is the point here for the HI. So we're just going to pick up the total wages times and we'll multiply that times 0.0145. We'll do that again. We're here. We're going to say this equals and we're going to go over to total wages times 0.0145. And you can see that up here in the formula bar up top. And we'll do it two more times equals scrolling over to the left. I think I might have said one more time last time about two more times here times 0.0145. You can see that up top here. Enter. And last time this is the last time for the Social Security or Medicare. We'll pick up the total wages times 0.0145. There we have that. Now we're going to sum this up. We're going to say equals SUM double click that sum function and pick up the Medicare wages. Once again it's not the same but it will match here. I mean it's the same number but it's not the same taxes. We're going to have to pay them twice or the employee will pay them and the employer will pay their portion. Okay. So now we're going to do the foo tab. So this is the this is an employee or only tax not an employee tax. It's going to have a different cap. So we're going to go to foo tab. I'm going to say equals. And instead of picking up total earnings we're picking up the capped earnings which oftentimes will be much less. And here we can see that on our last employee who has hit the cap. These three because it's our first or close to our first payroll have not and therefore we're picking up the same wages but it'll quickly later pay periods be capped out. So we're going to say it's this 4062 times and scroll the right so we can see it a bit 0.006. Enter. We'll do the same thing. This equals and we're going to make sure we're picking up the footo column times 0.006. Enter two more times. We're going to say this equals. Scroll over to the foo tab column times 0.006. And one more time equals. Scroll over to the foo tab column times 0.006. Okay then we'll sum this up. So we'll say equals SUM double click the sum function and add these up. And there we have that now note there's no corresponding foo tax in the deductions for the paycheck. It's only an employer tax and then SUTA we're going to do the same thing again. This will change from state to state but we'll give an example of SUTA because it's tied to foo time in some ways. So SUTA we're going to say equals and we're going to go to the SUTA wages now which will typically be similar in this case we have an eight thousand dollar cap which we can see in our last employee that's going to reach that cap. However it could change from state to state but typically it'll mirror in some way the same type of rules. So we're going to say and I didn't multiply times the rate so we got the number there times 0.054 and that will change from state to state as well. So we're going to say once again equals we're going to go to SUTA wages with that eight thousand dollar cap times and then scroll to the right a little so we can see it 0.054 enter. Two more times we're going to say equals scroll to the SUTA wages. So SUTA wages is the eight thousand dollar cap times and then we'll scroll to the right and hit 0.054. One more time equals then we have to stop because it's the last one SUTA wages times 0.054. Okay then we'll sum this up so we got the right one yep equals SUM and we'll sum this column up and there we have it. So those are going to be the employer taxes. Again this four sheet columns are kind of like a separate worksheet from the register to calculate the employer taxes. Note they're not really on the net income calculation here. They also would not appear on the earnings records so note the earnings records we're going to have the same type of thing by this is by employee and it basically stops at the net pay. We don't see the employer taxes because they're not coming out of the net pay. So typically the employer taxes are something that we just don't really have an intuitive understanding of. We probably have some intuitive understanding before even knowing payroll of our portion of the OASDI HI FIT because it comes out of our check but even when we see our pay stub we don't see the employer portion and because it's the same for OASDI and HI social security Medicare because it's a matching type thing it can get confusing to know that they're different and one's being paid by the employee out of the check the other being paid by the employer. So when we talk about the employer taxes they include OASDI and Medicare HI social security and Medicare which also has an employee portion and the employer tax of FUTA which is a federal tax federal unemployment tax which is an employer only tax only the employer pays it based on employees wages and then SUTA is often added even though it's a state tax even though we're concentrated on federal taxes and this is a state tax because it's closely related to FUTA. FUTA is tied into SUTA in some way the calculation of FUTA and the rate for FUTA is tied into SUTA in some way therefore SUTA is typically shown even in a classic covered basically federal stuff and just note that it'll mirror FUTA and usually as a employer only tax but could possibly have an employee portion based on the state we're talking about.