Payroll and labour compliance
US payroll taxes for federal and ten states, built in
The US country pack withholds federal income tax from 2020-or-later W-4 inputs, calculates FICA, FUTA and SUTA, and covers state withholding for ten states. It builds NACHA direct deposit files and the data for W-2s and Form 941. Rates ship as a starting point that you can override, and filing stays with you.
- IRS federal withholding
- FICA
- FUTA
- SUTA
- 10 states
- NACHA
- W-2 data
- Form 941
Which US payroll taxes does BusinessHRM calculate?
BusinessHRM withholds federal income tax with the IRS Publication 15-T percentage method from 2020-or-later Form W-4 inputs (2025 and 2026 tables), calculates Social Security, Medicare and the additional 0.9% Medicare tax, FUTA and SUTA, and covers state withholding for ten states: California, New York, New Jersey, Pennsylvania, Illinois, Massachusetts and Georgia, plus Texas, Florida and Washington with no state income tax. It builds NACHA direct deposit files, W-2 data and a Form 941 worksheet. It does not e-file with the IRS or SSA.
United States at a glance
- Social Security
- 6.2% each side up to $184,500 (2026)
- Medicare
- 1.45% each side + 0.9% employee over $200,000
- FUTA
- 0.6% on the first $7,000
- SUTA
- Your assigned rate per state
- States
- CA, NY, NJ, PA, IL, MA, GA, TX, FL, WA
- Federal minimum wage
- $7.25 an hour
- Overtime
- 1.5x over 40 hours; California daily and 7th-day rules
- E-filing
- No. W-2 data and 941 worksheet to file yourself
What the United States pack covers
Tax, contributions and labour rules on every pay run
Federal withholding
IRS Publication 15-T percentage method using the 2020-or-later W-4 inputs, with 2025 and 2026 tables for single, married filing jointly and head of household.
State withholding for ten states
California, New York, New Jersey, Pennsylvania, Illinois, Massachusetts and Georgia, plus Texas, Florida and Washington, which have no state income tax. Other states are not covered yet.
FICA, FUTA and SUTA
Social Security at 6.2% each side up to the $184,500 wage base for 2026, Medicare at 1.45% plus 0.9% additional over $200,000, FUTA at 0.6% on the first $7,000, and SUTA with the rate you enter for your state.
State programmes
Employee deductions for California SDI, New York PFL and DBL, Washington PFML and WA Cares, Massachusetts PFML and Pennsylvania UC.
Overtime and minimum wage
Overtime at 1.5 times over 40 hours a week, California daily and seventh-day rules, and salary checks against federal and state minimum wages.
| State | Income tax withholding | Employee programmes |
|---|---|---|
| California | Brackets | SDI 1.3% |
| New York | Brackets | PFL and DBL |
| New Jersey | Brackets | TDI and FLI |
| Pennsylvania | Flat 3.07% | UC 0.07% |
| Illinois | Flat 4.95% | None |
| Massachusetts | 5% plus 4% surtax | PFML |
| Georgia | Flat 5.19% | None |
| Washington | None | PFML and WA Cares 0.58% |
| Texas | None | None |
| Florida | None | None |
Figures as loaded in the app on 3 November 2026. Each rule carries its effective dates and source, and you can override any figure from a date of your choice. Confirm them with your adviser.
| State | Minimum wage |
|---|---|
| California | $16.90 |
| New York | $16.00 ($17.00 in the NYC area) |
| Washington | $17.13 |
| New Jersey | $15.92 |
| Illinois | $15.00 |
| Massachusetts | $15.00 |
| Florida | $14.00, $15.00 from 30 September 2026 |
| Texas, Pennsylvania, Georgia | $7.25 (federal) |
Figures as loaded in the app on 3 November 2026. Each rule carries its effective dates and source, and you can override any figure from a date of your choice. Confirm them with your adviser.
Where you set it up, and what it produces
Real screens from a demo workspace. Settings live under Settings, Country and compliance and under Payroll settings, Tax and contributions.
Statutory IDs on each employee profile
- Social Security Number
- ITIN
- Form I-9
- Form W-4
- State withholding certificate
Stored encrypted, format-checked and masked for anyone without permission to reveal them.
Files BusinessHRM builds for a US payroll run
- NACHA ACH direct deposit file
- W-2 data CSV (not the SSA EFW2 e-file format)
- Form 941 worksheet
- New-hire report CSV
- PDF pay stubs
Files are built from a locked pay run on the Exports page. A contribution register of employee and employer amounts per scheme exports to CSV.
How to switch on the United States pack
- 1Open Settings, then Country and compliance, and choose United States (and the province, state or emirate) for the company or for each office.
- 2In Payroll settings, open Tax and contributions and switch the calculations on. They stay off until you do.
- 3Add each employee's tax inputs and statutory IDs on their profile, and override any rate the pack ships with if your adviser tells you to.
- 4Run payroll in USD. Every payslip shows the tax and contribution lines, and the export screen builds the bank and statutory files for that run.
Not included for the US
States beyond the ten listed, local and city taxes, 1099s, Form 940, W-2 e-filing and E-Verify.
Not legal advice. Rules marked to verify in the app have not yet been checked against the official source.
Other country packs
- PKPakistanFBR income tax, EOBI, PESSI (Punjab)
- AEUnited Arab EmiratesWPS (SIF file), GPSSA, ADPF
- SASaudi ArabiaGOSI, SANED, WPS wages file
- GBUnited KingdomHMRC PAYE, National Insurance, Student loans
- AUAustraliaATO PAYG withholding, Superannuation guarantee, STP data
All compliance by country How the compliance engine works Payroll HR software in the US
United States payroll compliance questions
Which US states does BusinessHRM payroll cover?
State withholding is built in for California, New York, New Jersey, Pennsylvania, Illinois, Massachusetts and Georgia, and Texas, Florida and Washington are covered as no-income-tax states. Other states are not covered yet.
Does it calculate FICA and FUTA?
Yes. Social Security, Medicare (including the additional 0.9%), FUTA and SUTA are calculated on every run, with the SUTA rate you enter for your state.
Does it file W-2s or Form 941?
No. It builds a W-2 data CSV and a Form 941 worksheet for you or your accountant to file. It does not e-file with the SSA or IRS.
Does BusinessHRM handle 1099 contractors or local taxes?
No. 1099s, Form 940, city and local taxes and states beyond the ten listed are not covered.
Run the US payroll with the rules built in
Start free, choose your country and region, switch on tax and contributions, and preview a pay run before anything is paid or filed.
Free forever for unlimited users. No credit card required.