Financial responsibilities to employees

Besides paying employees the amount either provided by local, state or federal law, or by agreement, employers must also:

- Withhold federal and state income taxes from the employee's compensation.

- Withhold FICA (social security and Medicare) from the employee's compensation.

- Make the employer's contribution to match employee FICA withholdings.

- Pay the unemployment tax.

- When required, provide workers compensation insurance.

Laws on these matters may vary from state to state. Consult with legal and financial experts, as well as any governmental offices covering these areas.