USA Global Payroll & Tax Information Guide
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Payroll in the U.S. – 2022 Updates
Employers will continue to grapple with the coronavirus pandemic in 2022. Here are seven legal trends for the new year:
- Employer policies on booster shots
- Return to the workplace
- Off-the-clock work
- Overtime rule revision
- Patchwork of paid leave laws
- Emphasis on enforcing non solicitation clauses
- More litigation over choice of law
Read more about what’s new in 2022 and the laws and regulations taking effect in the U.S. here.
Basic Facts about Payroll in the U.S.
All employers within the U.S. borders must register their business to receive an Employer Identification Number with the IRS. There are many different taxes that anyone doing business in the U.S. must pay and/or withhold from an employee’s paycheck. These include:
- Corporate taxes
- Income taxes
- Social Security
- Sales taxes
- Payroll and withholding taxes
- Workers Compensation
Further, some taxes are state taxes, and some taxes are federal taxes. Income taxes are taken on both the state and federal level (in most cases).
Because of the number of different taxes that employers must pay and/or withhold, a great majority of small, medium, and large business owners hire a payroll company to help them remain compliant with regards to payroll taxes.
As noted above, there are anywhere from 6 to 8 (or more) different kinds of taxes that employers must pay or withhold for their payroll employees. All payroll employees are required to complete a W-4 form for their employer. The information provided on a W-4 indicates how much in state and federal income taxes that employer must withhold from the employee’s paycheck.
The 2022 tax brackets for single filers
0 – $10,275
$10,275 – $41,775
$41,775 – $89,075
$89,075 – $170,050
$170,050 – $215,950
$215,950 – $539,900
The 2022 tax brackets for married couples filing jointly
0 – $20,550
$20,550 – $83,550
$83,550 – $178,150
$178,150 – $340,100
$340,100 – $431,900
$431,900 – $647,850
It should be kept in mind that these 2022 adjustments will generally apply to the tax returns that are actually filed in 2023. That’s when the returns are sent off for the 2022 tax year.
Compensation and Benefits
When it comes to wages and benefits, employers should consult both federal and state guidelines. Whichever requirements benefit the employee most should be upheld.
How Employees File Taxes at the End of the Year
All U.S. employees are required to file their own taxes at the end of the year. The employer issues them a W-2 form that shows exactly how much taxes were withheld for the year. If the employee underpaid, they are solely responsible to pay the remaining balance. All U.S. employees must file their taxes (either personally or with the help of an enrolled agent or accountant) by April 15.
In many cases, employees overpaid taxes, had another child, or invested in property during the year. After taking into account all paid taxes and tax credits, the federal and state tax agencies send tax refunds directly to the employee.
Immigrants and foreigners may secure the proper work visas to work inside the U.S. legally. Foreign employees that desire to reside permanently in the U.S. must secure what is known as a Green Card Visa.
For non-immigrant work visas, employers must make a formal job offer and sponsor that employee for the appropriate work visa based on their job description and industry. For legal foreign workers, employers must demonstrate that that employee possesses knowledge or skills that cannot be otherwise reasonably attained.
For more information about how our Global Payroll Control Platform integrates with local payroll providers in the U.S., contact us today.