--- title: Payroll Tax Basics for Staffing Agencies description: Withhold income tax, Social Security, and Medicare, and pay FUTA. --- [Skip to content](https://help.backofficenow.com/payroll-taxes#main-content) English Show submenu for translations [More support](https://help.backofficenow.com/kb-tickets/new?hsLang=en) [Partner portal](https://tickets.backofficenow.com/tickets-view?hsLang=en) [![Boss Primary Logo w-o Descriptor\_Gray on White](https://help.backofficenow.com/hs-fs/hubfs/Logos%20and%20Branding%20guide/Logos/Logos%20without%20descriptors/Primary%20Logos%20without%20descriptors/Boss%20Primary%20Logo%20w-o%20Descriptor_Gray%20on%20White.png?width=350&height=172&name=Boss%20Primary%20Logo%20w-o%20Descriptor_Gray%20on%20White.png)](https://www.backofficenow.com) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://help.backofficenow.com/kb-tickets/new) - [Partner portal](https://tickets.backofficenow.com/tickets-view) - BOSS Home BOSS Home Hello! How can we help you today? - There are no suggestions because the search field is empty. 1. [BOSS knowledge base](https://help.backofficenow.com/?hsLang=en) 2. [Compliance](https://help.backofficenow.com/compliance?hsLang=en) 3. [Federal and General](https://help.backofficenow.com/compliance?hsLang=en#federal-and-general) # Payroll Tax Basics for Staffing Agencies ## Withhold income tax, Social Security, and Medicare, and pay FUTA. ## The rule IRS Publication 15 (2026) says that when you pay employees you withhold federal income tax and the employee share of Social Security and Medicare tax, deposit those amounts, and report them. You also have Federal Unemployment Tax Act (FUTA) duties. Withheld income, Social Security, and Medicare taxes are trust fund taxes. If they are not withheld or not deposited, the trust fund recovery penalty may apply. ## What employers must do Treat withheld taxes as money that belongs to the Treasury. Deposit, report, and pay income tax, Social Security tax, Medicare tax, and FUTA tax. State income tax and state unemployment tax are separate. This review did not copy percentage rates, because the pages opened did not quote the 2026 percentages in a form safe to reprint here. ## Effective dates Publication 15 for 2026 is the current employer guide. No separate January 1, 2027 rate change was confirmed from the pages opened for this article. ## What this means for BOSS partners and associates BOSS is often the employer of record for the associate. Wage, break, leave, posting, and tax rules usually follow the state where the associate works. Tell BOSS that state before the assignment starts. Associates should record every hour worked on the timesheet. Do not promise a pay practice, a leave bank, or a posting the statute does not require. Questions? Contact BOSS Support at support@backofficenow.com. ## Sources - [IRS Publication 15 (2026)](https://www.irs.gov/pub/irs-pdf/p15.pdf) This article is general information, not legal advice. 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