If you're like most small business owners, you don't have the time or resources to stay on top of payroll tax filing deadlines and requirements. That's where we come in. Our team of experts can help you navigate the complex world of payroll taxes, ensuring that you stay compliant and avoid costly penalties.
We offer a variety of small business payroll tax filing services, including:
- Quarterly and annual tax return preparation
- Tax payment planning and management
- Wage and hour compliance consulting
- Unemployment tax management
Whether you're looking for one-time assistance or ongoing support, we can tailor a solution to meet your needs. Contact us today to learn more about our small business payroll tax filing services.
Sanjiv Gupta's CPA firm provides fast, affordable, & easy payroll services to small businesses. Our team of experts can help you navigate the complex world of payroll taxes, ensuring that you stay compliant and avoid costly penalties. We can help you with quarterly and annual tax filings, as well as with any other required tax documents. They can also help you to understand the tax laws in your state, so you can make sure that you are compliant. This can save you a lot of time and hassle in the long run.
In addition, we can help you take advantage of payroll tax incentives and credits, such as the Work Opportunity Tax Credit and the Employer Retention Credit.
Who needs to run payroll?
Any business with employees will need to withhold taxes from employee paychecks and make regular tax deposits to the government. Depending on your business structure, you may also need to withhold payroll taxes from contractor payments.
If you have one or more employees, you're responsible for withholding federal income tax, Social Security tax, and Medicare tax from your employees' paychecks. You'll also need to pay your share of Social Security and Medicare taxes.
If you have a sole proprietorship, partnership, or limited liability company (LLC), you don't have to withhold federal income tax from your own pay. But you may need to make estimated tax payments to the IRS if you expect to owe $1,000 or more in taxes for the year.
You may also need to withhold payroll taxes from contractor payments. The rules for this depend on how much you pay the contractor and whether the contractor gives you a completed Form W-9, Request for Taxpayer Identification Number, and Certification.
What about contractors?
If you pay someone for services and the pay is $600 or more for the year, you generally need to report the payments to the IRS. For example, you may need to file Form 1099-MISC, Miscellaneous Income, for each person you paid:
$600 or more in rent
$600 or more in royalties or broker payments
$600 or more in services performed by someone who is not your employee
$600 or more in prizes and awards
$600 or more in other income payments
You don't have to withhold federal income tax, Social Security tax, or Medicare tax from these payments. But the person you paid may need to make estimated tax payments to the IRS if they expect to owe $1,000 or more in taxes for the year.
You may also need to withhold payroll taxes from contractor payments. The rules for this depend on how much you pay the contractor and whether the contractor gives you a completed Form W-9, Request for Taxpayer Identification Number, and Certification.
We recommend that you speak with Tax Professional to determine if you need to run a payroll or withhold any taxes for any contractor or employee.
Penalties for Not Running A Payroll
If you don't withhold federal income tax, Social Security tax, and Medicare tax from your employees' pay, or if you don't pay your share of Social Security and Medicare taxes, you'll be subject to penalties. The penalties will depend on how much tax you owe and how long you've been withholding the taxes.
You may also be subject to penalties if you don't withhold payroll taxes from contractor payments. The rules for this depend on how much you pay the contractor and whether the contractor gives you a completed Form W-9, Request for Taxpayer Identification Number, and Certification.
How often do I need to run payroll?
You'll need to run payroll at least once a month, but you may need to do it more frequently if you have employees who are paid weekly or biweekly.
You'll also need to make federal tax deposits at least once a month, but you may need to do it more frequently if you have a large payroll. The rules for this depend on the amount of taxes you withhold from employee paychecks and the amount of taxes you pay yourself.
You may also need to make state tax deposits, depending on the state in which your business is located.
What are the steps for running payroll?
The steps for running payroll will depend on the size and structure of your business, but there are a few key things you'll need to do:
1. Register your business with the IRS
2. Get an employer identification number (EIN)
3. Set up a payroll account with the IRS
4. Set up a payroll account with your state tax agency, if required
5. Withhold federal income tax, Social Security tax, and Medicare tax from your employees' pay
6. Pay your share of Social Security and Medicare taxes
7. Make federal tax deposits
8. Make state tax deposits, if required
9. File payroll reports with the IRS and your state tax agency if required
10. Give your employees their pay stubs
What records do I need to keep for payroll?
You'll need to keep records of your business income and expenses, as well as records of your payroll. Specifically, you'll need to keep records of:
1. Employee information, including name, address, Social Security number, and date of birth
2. Hours worked by each employee
3. Rate of pay for each employee
4. Amounts withheld from each employee's pay
5. Amounts paid to each employee
6. Dates of payments
7. Federal tax deposits
8. State tax deposits, if required
9. Payroll reports filed with the IRS and your state tax agency, if required
10. Any other records related to your payroll
How do I file payroll taxes?
You'll need to file a quarterly Form 941, Employer's Quarterly Federal Tax Return, with the IRS. You may also need to file a state payroll tax return, depending on the state in which your business is located.
You'll also need to make federal tax deposits at least once a month, but you may need to do it more frequently if you have a large payroll. The rules for this depend on the amount of taxes you withhold from employee paychecks and the amount of taxes you pay yourself.
You may also need to make state tax deposits, depending on the state in which your business is located.
What are the deadlines for filing payroll taxes?
The deadline for filing Form 941, Employer's Quarterly Federal Tax Return, is the last day of the month following the end of each quarter. For example, if you have a calendar year business, the deadline for filing the first quarter return would be April 30.
The deadline for making federal tax deposits is the 15th day of the month following the end of each quarter. For example, if you have a calendar year business, the deadline for making first-quarter federal tax deposits would be May 15.
The deadlines for filing state payroll tax returns and making state tax deposits vary from state to state. Check with your state tax agency for more information.
Do I need to give my employees their pay stubs?
Yes, you'll need to give your employees their pay stubs so the federal tax deposits would be May 15.
State payroll tax deadlines vary by state. You'll need to check with your state tax agency for more information.
Yes, you'll need to give your employees their pay stubs so they can see how much money was withheld from their pay for taxes. You should give them their pay stubs each time you pay them.
