Federal Tax Basics
What taxes are handled for me?
INNERGY manages the following tax types on your behalf:
• Federal income tax
• Social Security and Medicare (employee and employer portions)
• FUTA (Federal Unemployment Tax Act)
• State income tax
• SUTA (State Unemployment Tax Act)
• Local taxes where applicable
What federal tax basics should I understand?
The key concepts every employer should know:
• FICA — Social Security and Medicare withholding obligations
• FUTA — including FUTA credit reduction rules
• Federal deposit schedule — when and how often you must remit
• EIN/FEIN — your Employer Identification Number, required for all federal filings
• Form 8655 — reporting agent authorization that authorizes INNERGY to file on your behalf
Are there new reporting requirements for 2026?
⚠️ 2026 Compliance Update: New OBBBA-related W-2 reporting requirements for tipped employees take effect in 2026. Review your tipped employee payroll setup before year-end to ensure compliance. |
Filing & Compliance
Can taxes be filed retroactively?
No. Filings run current-quarter forward. Any previously closed quarters must already be filed and deposited before you onboard with INNERGY.
What’s the difference between a W-2 employee and a 1099 contractor?
A W-2 employee has taxes withheld by the employer and receives a W-2 at year-end. A 1099 contractor is paid without withholding and receives a 1099-NEC. Classification affects tax treatment, overtime eligibility, and benefits eligibility — consult your tax advisor if you’re unsure how to classify a worker.
Employer Obligations
Are wage garnishments supported?
Yes. INNERGY supports child support orders, federal tax levies, creditor garnishments, and other court-ordered garnishments. Note: the actual payment to the garnishing agency remains your responsibility as the employer. INNERGY calculates and applies the correct deduction amounts to each paycheck.
Is workers’ compensation supported?
Yes. Workers’ compensation insurance is supported, including a built-in integration with NEXT Insurance. You can enroll directly through INNERGY, and premium payments are automatically reconciled with each payroll run.