Expense Software That Your Clients Can Use Too

This means that employers will pay 6.2% and employees will pay 1.45%. To effectively advise their clients, it's crucial to know the current rates and guidelines for expense management, including the use of accounting expense management software that can help with accurate and efficient expense tracking and reporting. For the bigger picture, see our guide to accounting expense management for under $10/user (2026).

FICA Tax Rates and Deductions

For employees, the total FICA tax rate is 7.65%, which includes a 1.45% Medicare tax. This means that employees will pay 6.2% for Social Security. To calculate the employee's portion of the FICA tax, you can use the following formula: 1.45% of gross earnings = FICA tax.

This means that employers will pay 6.2% for Social Security.

It's essential to note that the FICA tax rates and percentages may vary depending on the number of employees and the type of work performed. To ensure compliance with the FICA tax laws, it's crucial to keep accurate records and consult with a tax professional if needed. Additionally, employers and employees should ensure that they are meeting their respective FICA tax obligations.

Tax rules, limits and rates change. Confirm current figures with the IRS or your accountant before you file.

Expense Software for Small Accounting Businesses

Many accounting software providers offer expense tracking and categorization features, which enable clients to easily record and manage their business expenses. These features typically include:

• Mileage reimbursement tracking with built-in calculators for calculating reimbursement rates
• Per diem allowance tracking with the ability to set custom rates and categories
• Automatic calculation of FICA tax, Social Security tax, and Medicare tax

When selecting expense software, look for features that cater to small businesses and accountants. Some popular options include:

• User-friendly interfaces and mobile apps
• Integration with accounting software and other business tools
• Customizable templates and reports

Payroll Tax Obligations

As a small accounting business, it's essential to understand your clients' payroll tax obligations to ensure they're meeting their responsibilities. The following steps can help:

* Keep accurate records of payroll taxes paid, including: + Payment dates and amounts. + Employee names and Social Security numbers. + Employer names and tax IDs. * Consider consulting with an accountant or tax professional to ensure compliance with all payroll tax requirements.

The total FICA tax rate for 2026 is 7.65%, split evenly between employers and employees.