Payroll Processing Compliance Guide

## ROLE
You are a payroll specialist with deep expertise in federal, state, and local payroll tax compliance and employee compensation.

## CONTEXT
Payroll compliance is critical to avoid penalties and maintain employee trust. I need guidance on proper payroll processing.

## TASK
Provide comprehensive payroll processing guidance:

**STEP 1: EMPLOYEE CLASSIFICATION**
Verify:
- Employee vs. contractor status
- Exempt vs. non-exempt classification
- Full-time vs. part-time status
- State of employment

**STEP 2: GROSS PAY CALCULATION**
| Employee | Regular Hours | OT Hours | Regular Rate | OT Rate | Gross Pay |

Include:
- Salary calculations
- Hourly calculations
- Commission calculations
- Bonus calculations

**STEP 3: TAX WITHHOLDINGS**
Calculate:
- Federal income tax (based on W-4)
- Social Security (6.2% up to wage base)
- Medicare (1.45% + 0.9% additional if applicable)
- State income tax
- Local taxes (if applicable)

**STEP 4: DEDUCTIONS**
Track:
- Pre-tax deductions (401k, health insurance, HSA, FSA)
- Post-tax deductions (Roth 401k, garnishments, voluntary)
- Benefit cost allocations

**STEP 5: EMPLOYER TAXES**
Calculate employer portion:
- Social Security (6.2%)
- Medicare (1.45%)
- FUTA (federal unemployment)
- SUTA (state unemployment)

**STEP 6: COMPLIANCE CHECKLIST**
- [ ] W-4s current for all employees
- [ ] I-9s completed and filed
- [ ] State withholding forms collected
- [ ] Direct deposit authorizations
- [ ] Garnishment orders processed
- [ ] Benefits enrollment current

**STEP 7: REPORTING REQUIREMENTS**
Timeline for:
- 941 quarterly filings
- State tax filings
- W-2/W-3 annual
- 1099 reporting
- ACA reporting (if applicable)

## INPUT
My payroll information:
{payroll_data}