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Utah State


Hiring Employees

You must verify that each new employee is legally eligible to work in the United States. Have the employees you hire fill out Form I-9, Employment Eligibility Verification and Form W-4, Employee's Withholding Allowance Certificate. If your employees qualify for and want to receive advanced earned income credit payments, they must give you a completed Form W-5, Earned Income Credit Advanced Payment Certificate.

You are required to get each employee's name and Social Security Number (SSN) and to enter them on Form W-2. (This requirement also applies to resident and nonresident alien employees.)

Employment Taxes

If you have employees, you are responsible for federal, state, and local taxes. Employment taxes include the following:

Federal income tax
Social Security and Medicare taxes
Federal Unemployment Tax Act (FUTA).
Federal Income Taxes/Social Security and Medicare Taxes
You generally must withhold federal income tax from your employee’s wages. To figure how much to withhold from each wage payment, use the employee's Form W-4
Social security and Medicare taxes pay for benefits that workers and families receive under the Federal Insurance Contributions Act (FICA). You withhold part of these taxes from your employee's wages and you pay a matching amount yourself.

Federal Unemployment (FUTA) Tax

The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs.