Payroll withholdig rules for 401(k)

[Guest Mike Schwing]

I have terminated my payroll provider and am doing in house payroll. My company has a 401(k) plan. I know I don't pay federal tax on the 401(k) but what about state (Michigan), local, Unemployment and Social Security? What do I pay tax and what don't I pay tax on for the 401(k) withholdings?

[Harwood]

$1,000 Gross

$100 401(k) deduction

$900 Taxable for FWT

$1,000 taxable for Social Security

$1,000 taxable for Medicare

$1,000 FUI

Per "The Payroll Source 2000:"

$900 Michigan SWT

$1,000 Michigan SUI

Local jurisdictions can go either way on 401(k) taxability

Get current Michigan information at:

http://www.michigan.gov/treasury