3 Things to Remember About Payroll Taxes

As an employer, you are responsible for payroll tax filing every year in order to avoid getting into trouble with the IRS. Not paying this tax can lead to many different types of penalties – and eventually debt – based on strict charges imposed by the IRS. In order to avoid these problems, make sure you take the following into account when filing your taxes.

3 Things to Remember About Payroll Taxes1. Keep Deadlines in Mind

The federal deadline for payroll taxes is the most common reason you might end up with debt and penalties incurred by the state. You should keep the date marked, underlined, and in red on your calendar every year. Failure to conduct payroll tax filing in time for the federal deadline will lead to both state and federal penalties.

There is also a fine for every W-2 that is not filed on time, meaning you should take those into account when filing your taxes. Withholding and Social Security have particularly steep penalties when they are not filed on time. The fines are measures to prevent tax evasion.

2.Small Businesses Are at Risk for IRS Inspections

While the media often talks about how corporations are doing everything in their power to avoid paying taxes, small businesses are actually the most common culprits for late or missing tax payments. While it may not even be intentional, many small businesses will be charged for tax evasion, and heavy penalties will be applied that will result in massive debt. It can be hard to justify missing payments after the charges have been made.

The best way to avoid becoming another small business that is charged with tax evasion is by having a bookkeeper file your payroll taxes. The bookkeeper will keep track of all taxes and payments that need to be made to the federal and state authorities. That way you will be able to avoid both the stress and penalties that could come with tax season.

3. Pay Close Attention to Federal and State Requirements

While you do research on how payroll tax filings work, you may overlook the most important details. Filing varies widely between federal, state, and local jurisdictions. While federal taxes are generally easy and universal for all citizens, your state may also require the information about your federal taxes.

You should keep all tax information on file to report to both the federal, state, and local governments. Apart from that, there may be different payment methods to keep in mind depending on the amount that will be paid. You should look at payment thresholds before making the deposit.

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