Help With Filing Payroll Taxes
Employers are responsible for paying payroll taxes to the respective administrating agency and for filing tax returns. Tax-filing rules vary by agency. The Internal Revenue Service enforces federal payroll tax filing laws; state agencies depend on the type of tax. The employer is required to file payroll taxes in a timely manner. He can obtain tax-filing help from a number of sources.
Other People Are Reading
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Publications
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IRS Publication 15/Circular E is The Employer's Tax Guide. The Circular E shows the employer how to file federal payroll tax returns that show employee tax withholding and the employer's payroll tax liabilities for the reporting period. Most employers report employee withholding, which include federal income tax, Social Security tax and Medicare tax, plus the employer's portion of Medicare and Social Security taxes, quarterly via Form 941. They report federal unemployment tax annually via Form 940. For state income tax filing procedures, employers follows their state revenue agency's guidelines. For example, Georgia employers can use the Georgia Department of Revenue, Employer's Tax Guide, to obtain filing instructions.
Online Sources
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The IRS typically sends employers that it has on file an updated version of the Circular E annually. The employer can also access it online. Employers are required to file yearly W-2s with the Social Security Administration (SSA); the employer can access W-2 instructions via the SSA website. The state revenue agency usually includes employers' tax-filing instructions on its website. The majority of employers pay state unemployment tax. The agency that handles unemployment tax usually includes the instructions on its website. Most unemployment agencies require quarterly reporting; for example, the Michigan Unemployment Insurance Agency allows businesses to file quarterly unemployment wage reports online.
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Payroll Software
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The employer can use payroll software to file tax returns. Payroll software such as Advanced Micro Solutions, Sage Peachtree and Ultimate Software have a payroll processing module and an accounting feature that allows the employer to create tax-filing forms and perform electronic filing.
Considerations
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The employer can outsource payroll tax duties to a third-party, such as a payroll service provider. The employer must sign a power-of-attorney document giving the provider the authority to handle its tax affairs. According to the IRS, providers such as AccountantsWorld, PayCycle and Corporate Payroll Services passed the IRS Assurance Testing System and/or Business Acceptance Testing criteria for Software Developers, Reporting Agents, and Transmitters and are authorized to submit returns to the IRS. The employer can also call the IRS and the respective state agency's business phone line for help with payroll tax filing.
Warnings
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The employer should file tax returns on time to avoid late-filing fees. The IRS, for example, charges a failure-to-file penalty of 5 percent (or up to 25 percent) of the unpaid tax for all or part of a month that the return is not filed as required.
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