Report Payroll Taxes
You must report taxes you deposit by filing Forms 940, 941, and 944 on paper or through e-file.
Federal Income Tax and Social Security and Medicare Tax
If you held federal income tax or social security and Medicare taxes, subsequently, then you must file Form 941, Employer's Quarterly Federal Tax Return each quarter. This includes withholding on sick pay and supplemental unemployment benefits.
For a step by step guide on filling out form 941, read my post last month called What You Should Know About Payroll Tax Filling Form 941
Federal Unemployment Tax Act (FUTA)
Only the employer pays FUTA tax; it is not withheld from the employee's wages. Report your FUTA taxes by filing Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.
Preparing and Filing Form W-2
At the end of the year, the employer must complete Form W-2, Wage and Tax Statement to report wages, tips, and other compensation paid to an employee. File Copy A of all paper and electronic Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, to the Social Security Administration (SSA). File Copy 1 to an employee’s state or local tax department. The detailed instructions are listed on the back of these forms.
Two deposit schedules are in effect. They are monthly and semi-weekly where you must deposit federal income tax withheld and both the employer and employee social security and Medicare taxes.
However, before, the beginning of each calendar year, you must look up which deposit schedule you have to use which is based on your 941 total tax liability. You would have reported this during a special rule for Forms 944 and 945. Schedules for depositing and reporting taxes are not the same.
You must use electronic funds transfer (EFTPS) to make all federal tax deposits.
Under the monthly deposit schedule, deposit employment taxes on payments made during a month by the 15th day of the following month. Employers who deposit monthly should only report their deposits quarterly or annually by filing Form 941 or Form 944.
Under the semiweekly deposit schedule, deposit employment taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit taxes for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. Report your deposits quarterly or annually only by filing Form 941 or Form 944.
Deposit FUTA tax by the last day of the first month that follows the end of the quarter. If the due date for making your deposit falls on a Saturday, Sunday, or legal holiday, you may make your deposit on the next business day.
Here Are IRS Published Upcoming Payroll Tax Dates
Deposit payroll tax for payments on Feb 5-7 if the semiweekly deposit rule applies.
Deposit payroll tax for payments on Feb 8-11 if the semiweekly deposit rule applies.
File Form 8038-GC, Consolidated Information Return for Small Tax-Exempt Government Bond Issues
File Forms 990, 990-EZ, 990-PF, 990-N, 990-BL, 990-T (Trusts other than section 401(a) or 408(a) trusts), 4720, or 8868
File Form 8038, 8038-B, 8038-G, 8038-TC for bonds issued in Oct/Nov/Dec 2019
File a new Form W-4 if you claimed exemption from income tax withholding in 2019.
Furnish Forms 1099-B, 1099-S and certain Forms 1099-MISC to recipients.
Deposit payroll tax for Jan if the monthly deposit rule applies.
Start withholding tax from employees who claimed exemption from withholding in 2019 but did not file a W-4. This was to continue withholding exemption in 2020.
Deposit payroll tax for payments on Feb 12-14 if the semiweekly deposit rule applies.
Deposit payroll tax for payments on Feb 15-18 if the semiweekly deposit rule applies.
Deposit payroll tax for payments on Feb 19-21 if the semiweekly deposit rule applies.
File Form 1096 with information returns, including Forms 1098, 1099, and W-2G for payments made during 2019.
File paper Forms 1094-C and 1095-C with IRS if you are an Applicable Large Employer; For all other providers file paper Forms 1094-B and 1095-B with the IRS
Deposit payroll tax for payments on Feb 22-25 if the semiweekly deposit rule applies.
File Form 8027 if you are a large food or beverage establishment.
File Form 730 and pay the tax on wagers accepted during January.
File Form 2290 and pay the tax for vehicles first used in January.
Farmers and fishermen: File Form 1040 and pay any tax due. However, you have until Apr 15 to file if you paid your 2019 estimated tax payments by Jan 15, 2020.
Deposit payroll tax for payments on Feb 26-28 if the semiweekly deposit rule applies.
Deposit payroll tax for payments on Feb 29 - Mar 3 if the semiweekly deposit rule applies.
Employers: Employees are required to report to you tips of $20 or more earned during February.
Deposit payroll tax for payments on Mar 4-6 if the semiweekly deposit rule applies.
If you withhold payroll tax and don't report or pay it then you may need to read my post on Payroll Tax Debt!
If you have workers in your company you are expected to owe payroll tax. Based on the size of your payroll you can need to make tax deposits with the IRS as soon as you pay your workers on the day after.
Whenever taxes are not paid on time then the IRS imposes interest and fines. If you let things go too long the fines and interest can surpass the payroll taxes.
HOW PAYROLL TAX ISSUES AND PROBLEMS OCCUR
Payroll tax issues occur in a variety of ways. When a business is short on cash and they are not paying your vendors or landlord, they are going to be out of business very soon.
In comparison, the IRS works slowly. It can be months before the IRS gets serious. Many company owners hope they will have enough money to fix their payroll problems by the time the IRS calls or visits.
Unfortunately, it does not normally happen. Instead, the issues with payroll taxes increase quarter after quarter, and interest and fines continue to accrue. By the time IRS appears things got so bad that the IRS threatens to shut down the company.
In certain cases, failure to pay payroll taxes can be a criminal offense subject to incarceration or a fine penalty. With my professional help, I may be able to prevent the IRS from making the owner taking personal responsibility for these payroll tax debts.
Under the IRS rules and regulations, there are tools that you are entitled to include the ability to contact a CPA to help you get tax relief. As a CPA with expertise in IRS tax cases, I will help you address your tax problems.
SOLUTIONS FOR PAYROLL TAX ISSUES & PROBLEMS
Solutions for your problems may include:
-Send an Offer In Compromise deal to reduce the tax debt
-Get a short-term deferral of your tax liability to give you time to get back on track
-Negotiate an Installment Payment Plan to settle your tax obligation
-Check your records to find if the IRS has determined your taxes correctly
-Determine if the IRS has expired or will expire early to recover your payroll tax debt
-Negotiate waivers of federal tax obligations so you can get a loan to cover your taxes
-Getting your tax debt ruled noncollectable so you can get a tax break from your old payroll tax debts
-Seeking relief from payroll tax levies
-Filing interest and penalty waiver charges
Each case is of course different and you need an experienced tax professional to advise you about the best approach to your situation.
BANKRUPTCY FOR PAYROLL TAX ISSUES & PROBLEMS
Insolvency filing isn't going to fix the payroll tax issues. Even if the company is a corporation, the IRS may be entitled to obtain from the owners, officers, and often even independent contractors and workers a portion of the payroll tax debt. This is defined as a penalty for the trust fund, a penalty for the recovery of trust assets, a penalty of 100 percent, a criminal penalty, or a penalty under Code Section 6672.
As a tax expert, I will help you decide whether you are responsible for the reclamation penalty for the trust fund. If we agree you are not a responsible officer subject to the penalty for the recovery of the trust fund we will negotiate with the IRS tax officers and IRS Appeals Officers to make them withdraw the penalty for the trust fund.
I would also inform you on the best way to make any partial payments to the IRS to will your personal responsibility for the fiduciary fund tax. Many company owners make hundreds of thousands of dollars of payments to the IRS only to find later that the payments have not reduced their personal IRS payroll tax debt.
When having overwhelming tax problems, a majority of taxpayers are not comfortable calling the IRS for answers and that's where I can help.
I know what it takes to get you qualified for the best tax relief possible.
Call 844-888-1040 for information.