Payroll Tax Returns and Payments
So, you've identified the workers
for whom you have payroll tax obligations, determined their taxable wages,
and computed how much you owe of each of the different payroll
taxes. What next?
When you hire your first employee, you'll also need to register with the IRS
and, perhaps, your state and local tax agencies. In addition to assigning you an
identification number for use on all your correspondence, deposits, returns,
and other documents, the tax agencies will usually supply you with information
about your specific payroll tax obligations and with the forms you'll need to
use when you deposit the taxes and file returns.
tax deposits and returns— of course, your main task is to see that
your taxes are paid and reported in a timely fashion to the appropriate tax
agencies. For federal payroll taxes, this usually means depositing the taxes
with an authorized financial institution on at least a monthly basis and
filing quarterly and annual returns.
tax deposits and returns— for most state payroll taxes, you send your
payment with an accompanying return on a quarterly basis directly to the
agency that administers the particular tax.
obligations to employees— your payroll tax obligations do not end with
filing tax returns with the government. You also have reporting obligations
to your employees and, in some cases, to your independent contractors.
requirements— you must also maintain all records pertaining to the
payroll taxes and wages you paid, for a specified period.
tax penalties— if you stay on top of your payroll tax obligations
throughout the year, you're in the clear. However, if you were inattentive
or simply made some mistakes along the way, you could be facing the threat
of some rather unpleasant penalty assessments.