Tax Resolution for Businesses: Payroll Tax Special Reporting

Hello and welcome to our blog post series about payroll taxes and tax resolution for small businesses! If this is your first visit to the Bullseye Tax Relief site, we’re happy to have you! And if you’ve visited us before, welcome back!

Here at Bullseye Tax Relief, our mission is to help individuals and business owners with any of their tax resolution needs. One of our main specialties is tax resolution for businesses and one of the common issues we see business owners deal with are payroll taxes. 

As we mentioned in one of our recent posts, Tax Resolution for Businesses: Payroll Tax, payroll taxes are also known as employment taxes and they are most easily summarized as the taxes a business must pay as a result of having employees. These are taxes like Medicare and Social Security that a business must withhold from its employees and pay to the IRS, as well as other taxes like unemployment.

In our two most recent posts, we’ve started to discuss the basics of payroll taxes and payroll tax reporting. If you haven’t read them yet, you can check them out here: Tax Resolution for Businesses: Payroll Tax and Tax Resolution for Businesses: Payroll Tax Reporting

In this post, we’ll share a little more information about the other payroll tax withholdings a business owner will have to keep in mind when it comes to payroll taxes, as well as the paperwork they’ll have to file in tandem with these payroll taxes.

What do I have to file to report payroll tax withholdings like sick pay and unemployment?

As of January 17, 2021, according to the IRS page, Depositing and Reporting Employment Taxes, “in general, employers who withhold federal income tax or social security and Medicare taxes must file Form 941, Employer’s Quarterly Federal Tax Return, each quarter. This includes withholding on sick pay and supplemental unemployment benefits.

“File Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees, if you are filing to report agricultural wages.

“File Form 944, Employer’s Annual Federal Tax Return, if you have received written notification about the Form 944 program.

“File Form 945, Annual Return of Withheld Federal Income Tax, if you are filing to report backup withholding.”

What about Federal Unemployment Tax?

As of January 17, 2021, according to the IRS page, Depositing and Reporting Employment Taxes, “only the employer pays FUTA tax; it is not withheld from the employee’s wages. Report your FUTA taxes by filing Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.”

As you can see from these two answers from the IRS’s website, filing and reporting your payroll taxes can be a little trickier than just going online and swiping your credit card. That’s why we always recommend any business that is struggling with payroll tax debt, or any IRS tax debt, to give one of our experienced tax resolution specialists a call today. The team at Bullseye Tax Relief is happy to offer a free initial consultation and transcript analysis to any new customers so that they can get a better idea of their tax resolution options without having to take on any additional initial cost.

So if your business could benefit from any type of tax resolution assistance, give our team a call today at (844) 582-3323.


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