Payroll software USA: deposits, Form 941, 940 and W-2
Payroll software in the USA withholds federal income tax, social security and Medicare from each pay, deposits the taxes on the employer's monthly or semiweekly schedule, files the quarterly Form 941 and annual Form 940 with the IRS, issues Forms W-2 by 31 January and handles state payroll taxes for each state where staff work.
Also calledUS payroll softwarepayroll software for the US
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- Tax authority
- IRS
- Quarterly return
- Form 941
- W-2 due
- 31 January
What payroll software in the USA has to handle
Deposits: the IRS assigns each employer a deposit schedule before the calendar year, based on its lookback period. Monthly depositors pay employment taxes for a month by the 15th of the following month; semiweekly depositors pay for Wednesday, Thursday and Friday paydays by the following Wednesday, and for Saturday to Tuesday paydays by the following Friday. Returns: Form 941 reports federal income, social security and Medicare taxes withheld, and the employer's share, each quarter, due 30 April, 31 July, 31 October and 31 January; semiweekly depositors add Schedule B. Form 940 reports federal unemployment (FUTA) wages for the year by 31 January. Forms W-2 go to employees by 31 January and to the Social Security Administration with Form W-3 by the same date. State taxes: each state runs its own; California, for example, charges employers unemployment insurance at 1.5% to 6.2% and employment training tax at 0.1% on the first $7,000 of each employee's wages, and withholds state disability insurance at 1.3% on all wages. Prices: Xero Payroll, powered by Gusto, is $36 a month plus $6 per employee or contractor; OnPay is $49 a month plus $6 per worker with federal, state and local filings; Rippling starts at $8 per employee per month plus a monthly base fee.
Common questions
How often do US employers deposit payroll taxes?+
On the schedule the IRS assigns from the lookback period. Monthly depositors pay by the 15th of the next month; semiweekly depositors pay within days of each payday.
What forms does US payroll software file?+
Form 941 every quarter, Form 940 for federal unemployment tax each year, and Forms W-2 with Form W-3 by 31 January. It also files state payroll tax returns.
Does payroll software file state payroll taxes?+
OnPay's price includes federal, state and local tax filings, at $49 a month plus $6 per worker. Square Payroll's contractor-only plan does not include automated tax filings.
How much is Gusto payroll through Xero?+
Xero Payroll, powered by Gusto, is an add-on to Xero's US plans at $36 a month plus $6 per employee or contractor.
Payroll software in the USA
Square Payroll has a contractor-only plan at $6 a month per person paid, without automated tax filings.
GustoPayroll, benefits and HR built for small businesses.Profile →
RipplingPayroll, benefits and IT unified on one employee record.Profile →
XeroCloud accounting for small businesses with a large app ecosystem.Profile →
DeelGlobal payroll, contractors and employer of record hiring.Profile →More payroll software for the USA
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