Employee Payroll Withholding for an Electrical Contractor

You just hired your first electrician as a W-2 employee. Which of the following best describes the payroll tax duties you now have as the employer?

You recently hired a journeyman electrician and correctly classified them as an employee. Your payroll tax duties for this worker consist entirely of withholding federal income, Social Security, and Medicare taxes from their weekly paycheck.

As an electrical contractor setting up your payroll system, you must configure how different tax responsibilities are funded. Match each payroll duty to the correct funding source or action you must take.

As an electrical contractor, you must manage your payroll tax duties systematically. Arrange the following actions in the correct logical sequence to deconstruct and fulfill these obligations properly.

You are auditing your business finances to determine why you received a penalty notice from the IRS. Upon review, you realize that while you correctly identified your field workers as employees, you failed to withhold federal income, Social Security, and Medicare taxes from their paychecks, and you did not pay the employer's share of unemployment tax. You evaluate the situation and conclude that the penalty is a direct result of neglecting your ____ duties.