Did you know a lot of employers struggle with payroll taxes? Some forget to file their payroll tax forms (like form 941), make errors, or don't pay on time.
These slip-ups can lead to serious fines. The biggest mistake is not paying 941 quarterly taxes promptly.
How Many Employers Are Late?
If you've missed payroll tax payments, you're not alone. As of 2020, out of over 627 million civil penalties issued by the IRS to employers, more than 360 million were for late payments. Employment tax filers are often penalized, second only to individuals, estates, and trusts.
Why Is It Bad To Be Late On 941 Taxes?
The form has gotten complex—it's not the simple 2-page document it was back in 2019. Now it's 6 pages with tricky COVID-19 credits and deferrals.
But there's a bigger problem than just paperwork. Unpaid taxes can lead to liens on assets like computers, vehicles, and even buildings. Ignoring IRS notices could result in losing your business and employees losing jobs—a total disaster!
How To Avoid Payroll Tax Debt?
Here's what to do:
- File your 941 returns on time—consider an e-file provider or let your payroll processor handle it.
- If you owe under $2,500 in payroll taxes, file quarterly.
- Quarterly filings are due at the month's end after the quarter ends.
- Owe less than $50,000? File monthly, due by the 15th of the next month.
- More than $50,000? File semi-weekly, deadlines vary based on pay dates.
- Always pay on time.
- If you owe under $2,500, you can pay by check. Otherwise, use EFTPS.
Missed Several Payments?
Don't worry, our tax pros can help. They'll get you back on track, ask for penalty forgiveness, and deal directly with the IRS. We'll catch up on your 941s and find the best solution for your organization.
We aim to keep your business running smoothly, your equipment in use, and your products and services on offer.
Sign up now to get in touch with a tax professional; assistance is ready for you.
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