W4 Forms

Each of your employees should fill out a W4 form when she begins working for you and again if her tax status changes, such as if she marries or has children. This form asks each employee about her filing status, such as married or single, as well as the number of withholding exemptions that corresponds with her legal and financial situation. The greater the number of exemptions an employee claims, the less money you withhold from her checks for federal income tax. Keep employee W4 forms on file, and refer to them when you calculate weekly payroll.

Weekly Payroll

To calculate weekly payroll checks, multiply each employee's hours for the week by his hourly wage. If an employee is paid a salary rather than a wage, divide his annual salary by 52 to calculate his weekly salary. Calculate Social Security and Medicare tax withholding by multiplying each employee's gross wages by .0565 as of 2011. Determine each employee's federal income tax withholding by finding the line in the column on the page that corresponds to the filing status he indicated on his W4 form. Calculate state income tax withholding according to your state's particular guidelines. Subtract each of these withholding amounts from his gross wages or salary to calculate his net wages or salary.

Quarterly Payroll Taxes

Every quarter you are required to file federal income tax forms as well as state employment tax forms, including unemployment insurance and industrial insurance. Make federal tax deposits using the IRS Electronic Funds Transfer Payment System (EFTPS) website, according to the schedule that the IRS provides for you when you register as an employer. Fill out your quarterly federal employment tax forms by the last day of the month following the end of the quarter, reconciling the tax deposits you have made with the amount you actually owe. Fill out state employment tax forms according to the specifications for your particular state.

W-2 Forms

At the end of each calendar year you must fill out and distribute W2 forms for each of your employees providing totals for the year's wages as well as cumulative tax withholdings. If you have kept track of your payroll and tax withholdings throughout the year, it should be easy to transfer these amounts to the relevant forms. Give your employees copies of their W2 forms by Ja. 31 of the year following the year they earned the wages, and mail a copy to the Social Security Administration by Feb. 28 or submit your W2 information online by March 31.