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Taxes:
• FICA (Social
Security and Medicare) - 7.65%
• FUTA (Federal Unemployment Tax) - 0.80%
• SUTA (State Unemployment Tax) - varies
by State (Average 2.7%)
This adds up to 11.15%.
In other words, for every hundred dollars in payroll, you most likely pay
11.15% in
taxes. Once you have signed up with a PEO there will no longer be
a need to collect, process, and forward
your FICA, FUTA, or SUTA payments. The PEO is responsible. Also,
it is likely that the PEO has acquired a lower SUTA rate
than the employer, therefore saving money and time. |
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