The taxes involved, in plain terms
- Federal income tax withholding — Money withheld from an employee's paycheck based on their W-4, sent to the IRS on their behalf.
- Social Security and Medicare (FICA) — Split between employer and employee, funding federal retirement and health programs.
- Federal unemployment tax (FUTA) — Paid entirely by the employer, funds unemployment benefits.
- State income tax withholding — Varies by state; some states have none.
- State unemployment tax (SUTA) — Employer-paid, rate often depends on your claims history.
Who's actually on the hook
As the employer, you're responsible for withholding the employee's share correctly, paying your own employer share, and filing everything on time with the right agencies. Missing a filing deadline or miscalculating withholding creates penalties even if the mistake was unintentional.
Why this is where software earns its cost
Automatic tax filing is the single feature that removes the most owner risk — it calculates the right withholding and files with the right agencies on the right schedule, without you having to track deadlines by hand.
Ready to stop doing this by hand? See how Gusto handles it automatically for a moving crew.
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FAQ
What payroll taxes does a moving company owner need to pay?
Federal income tax withholding, FICA (Social Security and Medicare), federal unemployment tax, and typically state income tax withholding and state unemployment tax, depending on your state.
Who pays FICA taxes — the employer or the employee?
Both. FICA is split between employer and employee, each paying a share toward Social Security and Medicare.
What happens if I miss a payroll tax filing deadline?
You can face penalties and interest even for an unintentional mistake, which is a major reason most moving companies move to software with automatic filing once they have employees.