What you need to know about payroll tax. Payroll tax deposit due date. How to pay payroll taxes. Late tax penalties. When you can’t pay payroll taxes. Get Tax Relief Help! Trust fund recovery penalty.
When Are Payroll Tax Deposits Due?
Employers need to deposit payroll taxes every month or semi-weekly depending upon your employer classification. Monthly depositors must deposit taxes by the 15th day of the following month for the payroll taxes owed for the previous month. Semiweekly employers must generally deposit taxes the following week for taxes owed from the previous week. New employers are always monthly depositors with a single exception.
Whether you’re a monthly or semiweekly depositor is based on your lookback period. The lookback period for 2014 begins July 1, 2012 through June 30, 2013. If you paid tax deposits of more than $50,000 on your Forms 941 for the lookback period, you are a semiweekly depositor.
How to Pay Your Payroll Taxes
Small businesses generally pay their payroll taxes electronically through a payroll service, or using the EFTPS system. You can also pay your taxes with your quarterly payroll tax returns or on-line using your charge card through a third party service provider.
In those cases where your quarterly payroll taxes are less than $2,500, you can pay your payroll taxes by check when you file your return. If you owe $2,500 or more, you will get hit with a penalty if you simply mail a check with your return.
Late Tax Deposits and Penalties
If you don’t pay your payroll taxes timely, you will be penalized. The failure-to-pay payroll tax penalty is calculated on how much you owe and how late you’re making the payroll tax deposit. The penalty for deposits made up to 5 days late is 2%. Deposits make up to 15 days late are subject to a 5% penalty. Don’t pay your payroll taxes on time after 16 days or more, the penalty increases to 10%. Amounts still unpaid more than 10 days after the IRS notice is sent are subject to a 15% penalty.
If you receive a letter from the IRS or IRS notice and you can’t pay your payroll taxes, get professional help.
Get Tax Relief Help!
If you can’t pay your payroll taxes you should get immediate tax help. Get tax relief help from an experienced tax problem specialist; experienced in tax problem solving. A tax problem resolution specialist that is licensed and certified. Fighting the IRS is not easy and requires special knowledge and experience – knowledge and experience that the accountant you have may not have.
There are strategies to help business owners to solve their tax problems with the IRS. These tax strategies include filing back tax returns, abating tax penalties, negotiating tax settlements, payment plans or installment agreements, and simply helping you to get more time to pay your late taxes; all at a reasonable cost.
Simply not filing your tax returns or not paying taxes you owe is not enough. We can often help reduce or eliminate the tax penalties you owe. We will tell you which taxes to pay and when to help reduce the taxes you owe.
IRS Problems and Payroll Taxes – The Trust Fund Recovery Penalty
The IRS has special authority to collect taxes owed from employers, business owners and other responsible persons who have control over payroll and payroll taxes. It’s not enough that the business doesn’t have the funds to pay. Special rules apply where a trust fund recovery penalty can be imposed and allow the IRS go collect back taxes personally from business owners and other responsible persons. Just because you’re not the owner does not relieve you of your responsibility to pay these taxes. If you are involved in the hiring or firing of employees, preparing payroll tax returns, depositing payroll taxes or just about any aspect involving payroll, you too can be held responsible. If your boss is not paying his payroll taxes on time, and you’re somehow involved in the payroll process and you know it, you might want to think about finding another job or at the very least, seeking the advice of a tax attorney, your accountant or other tax resolution specialist.
For more information on payroll tax deposits from the IRS go HERE.