Payroll taxes, also known as employment taxes, are just one out of a thousand different things a business owner has to keep in mind while running their business. Some might have accountants, others might use special software, but many small business owners across the nation have struggled with managing payroll taxes on their own. So if you fall within this last group, don’t feel bad!
Payroll tax issues are quite common. And if you’re wondering why, it’s because the IRS doesn’t necessarily make anything as easy as possible. As we discussed in our previous blog post, Tax Resolution for Businesses: Payroll Tax, just to figure out the required payment schedule for these payroll taxes, according to the IRS page, Depositing and Reporting Employment Taxes (as of January 17, 2021), you have to “review Publication 15 for Forms 941, 944 and 945, or Publication 51 for Form 943. If you fail to make a timely deposit, you may be subject to a failure-to-deposit penalty of up to 15 percent.”
You can’t just ask someone what your payroll tax schedule is and Publication 15, which you can view here: https://www.irs.gov/pub/irs-pdf/p15.pdf, is almost 50 pages long and full of legal jargon.
And guess what? If you don’t make your payroll payments in a timely manner in the correct amount, you could be subject to the “failure-to-deposit penalty of up to 15 percent” that we mentioned above.
So if you’re looking for information about payroll taxes, you’re in the right place. The team at Bullseye Tax Relief is made up of payroll tax experts and are available to help individuals and businesses across the country with any of their business tax needs. Plus, Bullseye Tax Relief offers a free first-time consultation to new clients, so there’s no risk!
If you’d like to learn more about payroll taxes first, our last blog post, Tax Resolution for Businesses: Payroll Tax, starts with the basics like what payroll taxes are. In this blog post, we’ll talk about reporting payroll taxes.
How do you report payroll taxes?
As of January 17, 2021, according to the IRS page, Depositing and Reporting Employment Taxes, “generally, employers must report wages, tips and other compensation paid to an employee by filing the required form(s) to the IRS. You must also report taxes you deposit by filing Forms 940, 941 and 944 on paper or through e-file.”
As you can see, the IRS generally holds employers responsible for a ton of different filings and paperwork on behalf of their employees and this can get quite confusing sometimes. While finding the proper forms mentioned above isn’t too difficult, as of January 17, 2021, you can find them in this IRS PDF on page 31 – https://www.irs.gov/pub/irs-pdf/p15.pdf. What is tricky is deciphering what the information in that PDF is directing you to do.
Go ahead, check it out.
Unless you’re well-versed in bureaucracy, it can be a little tough to figure out exactly what the document is asking you to do. But the team at Bullseye Tax Relief is here to help! If you have any questions about payroll taxes or any other small business taxation questions, give one of our experienced tax resolution specialists a call today at (844) 582-3323!
Sources:
https://www.irs.gov/businesses/small-businesses-self-employed/employment-taxes
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