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Payroll tax filing can be a rather simple process. Just like many Americans are now preparing their own personal taxes, you too can prepare your business’s payroll taxes without having to be an expert on the inner-workings of the IRS.
Step 1 – Know Your Numbers
It is important that you have been keeping track of each of your employee’s payrolls and know exactly how much each employee made, in both gross income and net income. Similarly, you should have been taking out an accurate amount of money from each paycheck as well as putting employer money toward each payroll tax required. You should also know the exact amount of these totals.
Step 2 – Know the Forms
In addition to any forms required by your state government, there are certain IRS forms that every employer should be familiar with. These forms include the employer’s quarterly payroll tax return (federal Form 941), the annual federal unemployment tax return (federal Form 940 or 940EZ), the Annual Return of Withheld Federal Income Tax (federal Form 945), and the Wage and Tax Statements (federal Form W-2).
Step 3 – Check Yourself
Failure to have accurate, honest numbers can result in punishment from the IRS in the form of a Trust Fund Recovery Penalty which requires you to pay 100 percent of the actual amount of payroll taxes plus interest. Avoid this by making sure that all your numbers are honest, accurate, and add up before filing.
Step 1 – Know Your Numbers
It is important that you have been keeping track of each of your employee’s payrolls and know exactly how much each employee made, in both gross income and net income. Similarly, you should have been taking out an accurate amount of money from each paycheck as well as putting employer money toward each payroll tax required. You should also know the exact amount of these totals.
Step 2 – Know the Forms
In addition to any forms required by your state government, there are certain IRS forms that every employer should be familiar with. These forms include the employer’s quarterly payroll tax return (federal Form 941), the annual federal unemployment tax return (federal Form 940 or 940EZ), the Annual Return of Withheld Federal Income Tax (federal Form 945), and the Wage and Tax Statements (federal Form W-2).
Step 3 – Check Yourself
Failure to have accurate, honest numbers can result in punishment from the IRS in the form of a Trust Fund Recovery Penalty which requires you to pay 100 percent of the actual amount of payroll taxes plus interest. Avoid this by making sure that all your numbers are honest, accurate, and add up before filing.
