The Tax Service supports most federal and state payroll taxes, as well as local payroll taxes in over 7,000 localities. Most of these payroll taxes are fully supported through both the payroll and tax filing systems; however, some taxes require special handling to ensure that the Tax Service processes these taxes accurately and timely. These special tax conditions include special federal taxes for agricultural employees, employees of the U.S. territories, certain local taxes, special state disability plans, and Third Party Sick Pay.
This chapter describes how to handle these payroll taxes so that you can report them to the Tax Service for quick and accurate processing.