Payroll Tax Problems?
See if you qualify for payroll tax relief!
When Are Payroll Taxes Due?
Payroll tax due dates vary based on your specific situation and tax liability. Many employers remit their payroll taxes on the 15th of each month (for taxes withheld the previous month), but one of the following due dates may apply, as well:
- Every Wednesday for payroll taxes withheld on either Wednesday, Thursday, or Friday of the previous week.
- Every Friday if payroll taxes are withheld on the previous weekend, Monday, or Tuesday.
- If you owe $100,000 or more in total employment taxes on any day, you must remit payment the following business day.
- For those who owe less than $500 in federal unemployment taxes (FUTA) for the calendar year, the due date is January 31.
- If your FUTA taxes exceed $500 per quarter, you must pay them by the last day of the month following the quarter.
Payroll taxes should be paid through the Electronic Federal Tax Payment System (EFTPS).
Consequences of Missed Payroll Tax Payments
Employers are responsible for submitting payroll taxes (Social Security and Medicare) to the federal government. This includes both the employer’s and employee’s portion. Additionally, state and federal unemployment taxes paid by the employer are included in payroll taxes. Collectively, these are known as FICA taxes.
As an employer, you are responsible for depositing payroll taxes on time, in the correct amount, and in the right way. Failure to do so can result in a Failure to Deposit penalty, interest fees, and other collection actions.
The amount of your penalty fee is based on the number of days your payroll deposit is late, starting from the original due date.
| If your payment is… | The payroll tax penalty will be… |
|---|---|
| 1 to 5 calendar days late | 2% of your unpaid deposit |
| 6 to 15 calendar days late | 5% of your unpaid deposit |
| More than 15 calendar days late | 10% of your unpaid deposit |
| More than 10 days after your first letter/notice or the day you get a request for immediate payment | 15% of your unpaid deposit |
Additionally, interest will accrue on the penalty fee until your unpaid balance is paid in full. This can quickly increase the amount you owe, making it difficult to get caught up.
Penalties and interest, however, aren’t the only consequences of failing to submit payroll taxes. The IRS can place tax liens and levies on your property. They can also seize your bank accounts and other assets, making it difficult or impossible to continue operating. If they believe you are intentionally not paying your payroll taxes, they may also pursue criminal charges.
If you’re behind on payroll taxes, don’t wait for the IRS to disrupt your business operations. Request a free consultation today to see if you qualify for payroll tax relief.
Small Business Payroll Tax Relief
Behind on your payroll taxes? You may qualify for payroll tax relief! There are two main options available:
Penalty Abatement
We may be able to reduce or remove your payroll tax penalty fees if there is reasonable cause as to why you were unable to meet your tax obligations.
Payroll Tax Payment Plan
If you are unable to pay your taxes in full, we can set up an affordable payment plan that allows you to pay your overdue payroll taxes over several months or even years.
In rare circumstances, the IRS may agree to an Offer in Compromise (OIC) for overdue payroll taxes. The overdue balance, however, cannot include trust fund taxes. That’s the portion of FICA withheld from an employee’s paycheck, as well as state and federal income taxes. They also rarely agree to an OIC if your business is still operating.
If you can’t pay your payroll taxes, now is the time to take action. Contact Business Tax Relief and explore your payroll relief options.