(616) 776-6457 | [email protected]

Blog

Stay compliant with payroll tax requirements

Bill Morgan

July 15, 2019

If you own a business and pay employees any kind of compensation, you are required to pay federal payroll taxes.

You must electronically deposit federal income tax withheld, and both the employer and employee social security and Medicare taxes. If you fail to make a timely deposit, you may be subject to a failure-to-deposit penalty of up to 15 percent.

The intricacies of deposit due dates, reporting, forms, unemployment tax and withholding are many. Avoid getting hit with tax penalties from the IRS — know the annual due dates and ensure you pay on time.

Stay diligent with your tax responsibilities

There are a few areas of payroll tax requirements that small business owners should research and acknowledge. If one of these areas is confusing to you, talk with your tax advisor about the topic.

  • Electronic filing of federal tax deposits 
  • Income and FICA tax deposit due dates
  • FUTA (federal unemployment) tax deposit rules
  • Federal payroll return requirements
  • Providing Form W-2s and Form 1099s to workers
  • Avoiding penalties and maintaining payroll tax records 

Payroll tax penalties could be severe

Part of the responsibilities of being a business owner include obligations for payroll tax.

In fact, there are both criminal and civil penalties for (1) failing to file payroll tax returns on time or (2) to deposit taxes you owe on time.

One of the biggest tax liabilities is called the 100% penalty. You can be held personally liable for all income and FICA taxes that you willfully either fail to withhold from your employees' wages or fail to pay to the IRS and your state tax agencies.

Another common liability is from Form W-2. If you fail to prepare a Form W-2 for your employees, or if you willfully furnish incorrect ones, you will be subject to a penalty, per each statement that should have been sent or that was incorrectly prepared.


If the thought of keeping track of the IRS tax filing calendar gives you a headache, contact an expert from Morgan & Associates today. We’d be happy to help!

Back to List


In three easy steps, our team can help you
find your path to a sustainable, profitable business
and more individual freedom.

 

BOSS is the answer to your back office headaches. Our cloud-based solution enables you to hand complex accounting tasks over to us. We work the numbers while providing you 24/7 access to your data—and all at a fixed, affordable monthly fee.

read more

 Our Specialties

Chiropractors

We understand that the countless number of tasks associated with running a successful practice leaves you with little time to deal with your numerous accounting and tax responsibilities. That is where ...

read more

Property Management

With proactive tax strategies and industry-specific expertise, we have a proven track record of helping property management firms succeed from...

read more

Contractors

If you contract your services as a salesperson, freelance writer, graphic designer, real estate professional, or other profession contact us to learn about the comprehensive, affordable...

read more

Nonprofits

Morgan & Associates has extensive experience in nonprofit accounting, currently providing audit and tax return services to a growing number of...

read more

mobile-graphic

Latest from Our Blog


qb-proadvisor-desktop qb-proadvisor-advdesktop qb-proadvisor-online qb-proadvisor-advonline qb-proadvisor-enterprise

Learn More

membershipmembershipmembershipmembershipmembershipmembershipmembershipmembershipmembershipmembership