Taxpay® Payroll Tax Service

Payroll taxes are complicated by ever-changing federal and state regulations. Let Taxpay, our payroll tax service, calculate and deposit payroll taxes and file tax returns for you — like we do for more than 500,000 businesses across the U.S. — and feel confident that your tax obligations are in expert hands.

Taxpay helps you manage your payroll tax obligations, including:

Federal Tax Liability

  • Federal income tax
  • Employee social security
  • Medicare

As an employer, you must withhold and deposit to the IRS federal income tax, social security taxes, and Medicare taxes. Taxpay can make these payroll tax payments on a quarterly, monthly, semiweekly, or next-day basis depending on your tax liability. It also meets federal EFTPS requirements for employers who must make their payments electronically, and files Form 941 quarterly, or Form 944 annually, to reconcile taxes calculated versus taxes paid.

Federal Unemployment Taxes

The Federal Unemployment Tax Act (FUTA) established the employer tax that finances the federal unemployment program. Taxpay files Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, to report taxable wages paid during the year and reconcile your quarterly FUTA tax deposits.

State and Local Income Taxes

Every employer that pays employee wages is required to withhold income taxes from each payment of taxable wages, if required by its state or local taxing agencies. Taxpay transfers applicable state and local taxes on the check date and deposits them by the due date.

State Unemployment Insurance (SUI)

All states require employers to pay a state unemployment insurance tax. Taxpay includes a toll-free support line to help you manage SUI obligations.

Handle Tax Payments Yourself

Unlike many of our competitors, Paychex does not require our clients to use our payroll tax service. If you choose, you’ll have the opportunity to handle your own payroll tax obligations — giving you more control over cash-flow management. We will provide you with your tax liability amounts and due dates.