Guide to US Payroll Compliance
US payroll compliance refers to following federal, state, and local laws related to employee wages, tax withholdings, filings, reporting deadlines, and labor regulations to avoid penalties and legal risks.
Guide to US Payroll Compliance explains the key payroll laws in the United States, required tax filings, employer responsibilities, and how organizations can stay compliant while running payroll accurately.
Who This Guide Is For
- US employers running in-house or outsourced payroll
- HR and payroll teams managing compliance risk
- Businesses expanding or hiring in the United States
Summary: US payroll compliance requires accurate wage calculations, timely tax filings, proper record-keeping, and adherence to federal and state labor laws.
What Does US Payroll Compliance Include?
- Accurate wage and overtime calculations
- Federal, state, and local tax withholdings
- Mandatory payroll tax filings and payments
- Employee record-keeping and reporting
Key Federal Payroll Compliance Requirements
- Withhold federal income tax
- Withhold and pay Social Security and Medicare (FICA)
- File IRS Form 941 (quarterly)
- File IRS Form W-2 and W-3 annually
- Pay federal unemployment tax (FUTA)
State and Local Payroll Compliance
- State income tax withholding and filings
- State unemployment insurance contributions
- Local payroll taxes (where applicable)
- State-specific labor and wage laws
Common US Payroll Compliance Challenges
- Managing different state tax rules
- Missing filing or payment deadlines
- Incorrect wage or overtime calculations
- Incomplete payroll records
How EHRMSNext Supports US Payroll Compliance
- Automated tax calculations and deductions
- Compliance-ready payroll processing
- Accurate record-keeping and audit trails
- Centralized payroll and compliance visibility
- Reduced risk of penalties and errors
Benefits of Staying Payroll Compliant
- Avoid fines, penalties, and legal disputes
- Build employee trust and confidence
- Ensure accurate financial reporting
- Reduce operational and audit risks
FAQs
What is US payroll compliance?
US payroll compliance means following all federal, state, and local payroll laws related to wages, taxes, and reporting.
What payroll taxes do US employers need to file?
Employers must file federal income tax, Social Security, Medicare, unemployment, and applicable state and local taxes.
How often must payroll taxes be filed in the US?
Payroll taxes are filed quarterly, annually, or per pay period depending on the tax type and jurisdiction.
What happens if payroll compliance is missed?
Non-compliance can result in penalties, fines, audits, and legal action.
Who is responsible for payroll compliance?
Employers are legally responsible for ensuring payroll compliance, even if payroll is outsourced.