Financial Resource

Many entrepreneurs do not realize how important it is to obtain payment of payroll taxes to be made in time. If a late payment will be made as soon as the IRS brings to it, the penalties are stiff: 10% discount on top, plus interest. Trying to earn that in a bank today! Resist the temptation to pay too late, because it saves money, “it is a money-loser. Plus, the penalties are not deductible.

Quick Tip: The IRS uses the term “tax deposit account” within the meaning of “paying taxes”, and uses the term”monthly depositor” or “semi-weekly depositor” to “paying monthly” or “semi-weekly payers”, respectively.

Determine the schedule for payments

Before you can decide when the tax is due, you must first check whether you are a monthly depositor or a semi-weekly depositor. What type are you have nothing to do with when and how often you pay employees to do. To determine the schedule, to you, please review the records in the billing period of “observation” for.That period always starts from 1 July to 30 June. For 2006, the period of “observation” from 1 July 2004 to June 30, 2005. If the amount deducted for taxes 941 50,000 dollars or less, you are a monthly depositor. If the amount in that period more than 50,000 U.S. dollars, it is a semi-weekly depositor.

Monthly Depositor

If you are a monthly depositor, you will pay the taxes by 15 the following month. For example, with 941 held in August 2006, the payment is dueFriday, September 15th. If the 15th falls on a weekend or Federal holiday, payment must be made the next business day.

Semi-Weekly Depositor

If the payday falls on a Wednesday, Thursday and / or Friday, the deposit will be payable by next Wednesday.

If the payday falls on a Saturday, Sunday, Monday and / or Tuesday, the deposit will be due by next Friday.

Entries $ 100,000

Regardless of the nature of the depositors who are, if deemed 941Reached 100,000 dollars or more, the payment must be made the next working day, and the semi-week deposit rules in effect, to transmit.

Payment methods

Payments can one of three ways:

The IRS will send you a yellow booklet with coupons. Fill out one, and take a check to your bank. Be sure to fill in the butt than the coupon for your records.

Using the electronic payment system of the Federal Tax Administration. Eftps.com For more information and to register. Allowtwo weeks for the registration process is complete. Other types of fees can be paid even with this system.

Find a provider’s payroll, electronic payment of taxes, job offers, and subscribe to this service.

Avoid Costly penalties

Do not pay too late

Pay with the right method

Pay the correct amount

These guidelines are for the federal contribution is only 941, and are designed for small businesses, with $ 100,000 in federal territory have identified 941 bills. SeeInstructions for Form 941, circulars and E for further details and information.

http://www.taxhelp.pannipa.com/2010/02/21/federal-941-payroll-tax-payment-guidelines/

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