Circular E Definition

Internal Revenue Service Publication 15 (Circular E), Employer’s Tax Guide outlines employer tax responsibilities. The guide contains the necessary information to calculate taxes for employees and how to withhold, deposit, report, and correct employment taxes.

Circular E Extended Definition
Most employers are responsible for employee income, Social Security, and Medicare taxes. This circular describes responsibilities for withholding, reporting, paying, depositing, and correcting employment taxes. 

Sections in Circular E include:

  • Employer Identification Number (EIN)
  • Who are employees?
  • Wages and other compensation
  • Tips
  • Supplemental wages
  • Payroll period
  • Withholding from employees’ wages

It also provides information on hiring new employees, recordkeeping, deadlines, electronic filing and payments, and how to order no-cost employer tax products from the IRS.

If you’re an employer, Circular E is your go-to guide on all-things payroll.

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Publication 15 (Circular E), Employer’s Tax Guide

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Rachel Blakely-Gray | Feb 15, 2023

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