As one of the original 13 and the first colony to declare independence from the British, it’s no surprise that New Hampshire’s state motto is Live Free or Die. As a small business owner in the state, you share this independent spirit. You want to focus on living free and growing your small business instead of having to deal with payroll taxes. Luckily, since New Hampshire doesn’t collect state income tax, it’s one less thing that you have to worry about. But you can’t forget about federal taxes.
That’s why we’re here. We designed this handy payroll calculator with you in mind, to help you calculate your federal payroll withholdings. Simply enter wage and W-4 information for each of your employees, and our calculator will process their gross pay, net pay, and any federal deductions.
Here’s a quick overview of what you need to know when you’re calculating federal payroll taxes. For a more in-depth discussion on each of the federal payroll tax items, check out our step-by-step guide.
However, if you pay state unemployment taxes on time and in full, you are eligible for a tax credit of up to 5.4%, making your FUTA tax bill effectively 0.6%. It’s a huge saving, so make sure you pay attention!
As an employer, you’re responsible for paying unemployment insurance. For 2019, New Hampshire unemployment insurance rates range from 0.1% to 7.0% with a taxable wage base of up to $14,000 per employee per year.
New employers should use 1.2%.
The state has the right to adjust its rates quarterly, so look out for notices to make sure you pay the right taxes each quarter.
And remember to pay your state unemployment insurance on time so that you can get the big FUTA tax credit!
You’re almost at the finish line! Now get your signature ready because after you’ve calculated your employees’ net pay by implementing all deductions, it’s time to write those checks.
All you have to worry about is paying your employees on time and setting aside any taxes your company is responsible for (FICA and UI payments, we’re looking at you).
You will need to fill out Forms 940 (annually) and 941 (quarterly), but if you prefer ongoing fulfillment, payment can be made via the EFTPS payment system. Find further information on employment tax due dates from the IRS here.
If you’re still looking to fill your brain with more juicy payroll tax facts, here are some additional resources and contact information: