Hello and welcome to the Bullseye Tax Relief blog series discussing payroll taxes!
If you own and operate a small business with employees, then you’ve probably run into payroll taxes already. Payroll taxes, also known as employment taxes, are the taxes that a business is required to pay to the IRS as a result of having employees. But it’s not that simple. These taxes, like social security and medicare, must be withheld from the employees paychecks, matched by the employer and then reported and deposited to the IRS in the correct amount at the correct time.
As a business owner, you know you have a ton of other things going on besides worrying about if you’re supposed to be reporting payroll taxes this week or not, so that’s why we’re hoping to simplify the entire process for you by sharing some of the payroll tax basics.
In our most recent previous blog post, Payroll Tax Due Dates: January, we discussed all of the different IRS paperwork filings that are due in January. If you haven’t read it yet, you should take a quick glance because a lot of important paperwork is due in January! There is a form for withholdings, one for W2s, a separate one for 1099s, an alternate form for agricultural workers and a form for reporting FUTA (Federal Unemployment Tax Act) taxes. As of January 22nd, 2021, according to the IRS Page Employment Tax Due Dates, all of these forms are due by January 31st. However, certain forms like Form 945, Annual Return of Withheld Federal Income Tax and Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return allow for an employer to have “10 additional calendar days to file” if you had “deposited all taxes when due.”
Payroll Tax Due Dates: February 28th
So the first forms due in February are actually any forms that were legally not yet filed in January, like the two mentioned above.
Once those have been taken care of, as of January 22nd, 2021, according to the IRS Page Employment Tax Due Dates, the next due date for paperwork is February 28th. By then, you must have filed the following forms:
- “File Copy A of paper Form 1099, other than those with entries in box 7, (see By January 31 above,) with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with the IRS. For electronically filed returns, see By March 31 below.
- “File paper Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, with the IRS. See section 6 of Publication 15. For electronically filed returns, see By March 31 below.”
As you can see, the forms required to be filed in February are for employers who prefer to file their IRS paperwork manually, rather than electronically. According to the information above, quoted directly from the IRS Employment Tax Due Dates Page, if an employer wanted to file those forms electronically, they have until March 31st, rather than February 28th.
If you or your business need any help with filing IRS forms, payroll taxes or any type of tax resolution services, don’t hesitate to contact the team at Bullseye Tax Relief. We specialize in business tax resolution services and are proud to serve clients across the entire nation. Give us a call today at (844) 582-3323!