Understanding Payroll Tax Payment and Filing Requirements
Employers are required to make federal payroll tax payments to the government, as well as filing the proper reporting and informational returns. Employers must also provide employees and contractors with W-2 and 1099 reports explaining the compensation paid and withholding amounts. There may be state requirements as well. The rules can be complex and penalties for noncompliance severe, which is why the administration of payroll tax responsibilities is often outsourced by small businesses.
Properly handling payroll tax responsibilities involves making sure that:
Accurate and timely compliance is the key to avoiding payroll tax penalties!
Properly handling payroll tax responsibilities involves making sure that:
- your federal and state taxes are paid and reported to the appropriate tax agencies
- you properly report income, amounts withheld, and amounts paid on behalf of employees and contractors
- you maintain the required federal and state records
Accurate and timely compliance is the key to avoiding payroll tax penalties!
