Oklahoma Salary Paycheck Calculator
Are you looking for help understanding Oklahoma payroll taxes? You’ve landed in the right place. We’ve got answers to your frequently asked questions about state and federal payroll taxes and paycheck laws like “What’s the salary threshold in Oklahoma?” and “When is Workers’ Compensation required?”
Federal payroll taxes in Oklahoma
FAQ 1: What is FICA tax?
Answer: The Federal Insurance Contributions Act, or FICA tax, is made up of the Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. The Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
|Medicare tax||1.45% on each employee’s wages each year|
|Social Security tax||6.2% on the initial $147,000 of each employee’s wage in 2022|
FAQ 2: Do I need to withhold federal income tax from my employees’ pay?
Answer: Generally, yes—unless an employee is exempt from federal income tax. Your employees should complete Form W-4, Employee’s Withholding Certificate, when they begin working for you. The information on Form W-4 (including whether or not they are exempt from withholding) will determine how much tax to withhold from your employee’s wages. You don’t need to send the forms to the IRS—keep the W-4 documents with your payroll records.
FAQ 3: Are there other federal payroll taxes I need to pay?
Answer: Yes. You’ll need to pay federal unemployment tax, and some employees may need to pay the Additional Medicare tax.
Additional Medicare tax
Employees earning more than $200,000 per year may be required to pay the Additional Medicare tax. You will need to withhold 0.9% on employee earnings greater than $200,000.
Federal unemployment tax
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but many employers only have to pay 0.6% each year.
FAQ 4: How do I pay these federal taxes to the IRS?
Answer: The IRS requires you to pay these taxes annually, quarterly, monthly, or semi-weekly depending on how much taxes you owe.
FICA, federal income tax, and Additional Medicare tax are paid most frequently, either monthly or semi-weekly. Annual or quarterly payments are not an option. Each quarter you will provide a summary on Form 941, Employer’s Quarterly Federal Tax Return.
Federal unemployment tax is paid annually using Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return. Quarterly payments are required for employers with a tax due of $500 or more.
Oklahoma state payroll taxes
FAQ 1: How is Oklahoma withholding tax calculated?
Answer: Have your employees complete Form OK-W-4, Employee’s State Withholding Allowance Certificate, when they start working for you. The information they provide on this form will help you calculate the amount of tax to take out.
Using your employee’s gross pay along with Oklahoma’s percentage formula method or the withholding tax tables, you can calculate the withholding amount.
How often you’ll need to pay the withholding tax to the state depends on how much tax you withhold.
|Oklahoma Withholding Tax Payment Frequency|
|Tax Amount Withheld||Payment Frequency|
|Less than $500 per quarter||Quarterly|
|More than $500 per quarter||Monthly|
|$10,000 or more per month||Semi-weekly|
And all employers need to file quarterly wage withholding tax reports.
Paying your tax and filing your reports online helps you avoid late fees. But Oklahoma still allows paper reports and checks to be mailed.
FAQ 2: What are unemployment tax rates in Oklahoma?
Answer: Most companies will pay state unemployment tax rates between 0.3% and 7.5%. You must pay the tax quarterly and file a wage report electronically each quarter.
FAQ 3: When do new hires need to be reported to Oklahoma?
Answer: Employers have 20 days from the date of hire to report newly hired employees to the Oklahoma Employment Security Commission.
FAQ 4: What’s the salary threshold in Oklahoma?
Answer: Because the state of Oklahoma doesn’t have its own salary threshold, it adheres to the federal salary threshold, which is now $684 per week (equivalent to $35,568 per year for a full-year worker). The Department of Labor permits employers to count some bonuses, commissions, and other incentive payments toward meeting the standard salary level (up to 10%). Employees who earn at least $107,432 per year may qualify as “highly compensated.” See this Department of Labor fact sheet for details.
FAQ 5: When are final wages due to employees who leave?
Answer: Employee’s final paychecks are due no later than the next regularly scheduled pay date.
FAQ 6: When is Workers’ Compensation insurance required in Oklahoma?
Answer: Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
FAQ 7: Does Oklahoma require employers to provide paid leave to employees?
Answer: All employers need to provide at least two hours of leave to every employee to allow them to vote. If the employee provides proof that they voted, the leave must be paid.
Hopefully, you’re feeling good about processing your Oklahoma payroll. If you don’t want to do payroll yourself, Gusto can do it for you.