Employers usually withhold taxes on their employee's wages, submit those taxes, and provide a Form W2 to their employee at the end of the year. Employers generally must withhold federal income tax from employees' wages.To figure out how much tax to withhold, use the employee's Form W-4. Generally, you do not have to withhold or pay any taxes on payments to independent contractors. New York has such a rule in place, subjecting employees to New York state income taxes if they make the choice to work remotely in another state. The charts below list some examples of taxable and exempt foods and beverages sold at retail food markets and similar establishments. IRS regulations require a written election to receive annualized compensation in order to avoid additional taxes being imposed on the employee. The college contributes an equal amount. Student employees enrolled and actively attending 6 or more credit hours in a semester are exempt from this tax. Establish a basic payroll structure to help you hire employees.