How will the state know who I am paying taxes for and why does some of my employees never take out federal taxes and sometimes not state.

You file the taxes withhekd with their SSN.

You can't not take taxes out unless they are exempt.

ON some employees if they have enough exemptions and their pay is so low, they may fall to a level not to have any taken out. But it would be a very lower paying job, with someone perhaps married with 2 or 3 dependents

how will the state know who i am paying taxes for and why does some of my employees never take out federal taxes and sometimes not state.
If this is any use to you... I'll tell you about a local restaurant owner in my town... this happened several years ago. He became short of cash, and since several of his employees were illegals, and didn't file taxes anyway, he started pocketing the money he used to pay to the IRS from their pay. Eventually the IRS sent an agent to his restaurant, who took note of how many employees he had, and checked it against how many he was reporting... and he ended up getting a bill from the IRS... for over $35,000. He is STILL paying on that debt to this day. Don't mess with the IRS.

how will the state know who i am paying taxes for and why does some of my employees never take out federal taxes and sometimes not state.

You pay witholding taxes to the state that you withhold from their wages. You (as an employer) must set up an account with the State Tax Commission in the state which the work is performed. Each month you remit the taxes for the previous month to that state. When you sign up as an employer in the state you are given a state number to use to report withholding taxes. You also must report federal taxes withheld, Fica and Medicare to the Federal Government.

You need to set accounts up for Federal and State unemployment taxes and take out worker's compensation insurance.

All of these need to be done if you are paying employees to work for your company.

#2.

The W-4 is the form you use to take out the deductions. The more dependents listed on the W-4 the employee gives you the fewer taxes you take out. If the employee lists enough dependents no taxes are withheld except fica and medicare which always must be withheld.

You must use the tax tables furnished by IRS for federal withholding, tax tables furnished by your state tax commission for state withholding, 6.2 % for Fica and 1.45% for Medicare taxes. You can call and get these from the agencies. You need Circular E from the IRS.

If you need help setting the accounts up let me know which state you are in and which accounts you need help with and I can get the information that you need to set them up.

Shirley