Business Payroll Tax Reporting
As soon as you hire your first paid employee, even if they only work a few hours a week, seasonally or for a temporary period, you must withhold and report payroll taxes. These include estimated federal taxes, Social Security, Medicare, estimated state taxes, state unemployment and disability insurance premiums and in some jurisdictions, estimated local income taxes.
Depending on the size of your business’s total payroll and number of employees, the business will be required to make quarterly, monthly or bi-weekly reports and payments to the state(s) in which you employ people as well as to the federal government. You will need to inform the Internal Revenue Service, as well as state revenue and labor departments of how much you paid your employees and how much you withheld from their paychecks. Payroll withholdings must be remitted to the federal and state taxation authorities along with the appropriate employer contributions (i.e. matching Social Security and Medicare amounts, state unemployment and disability insurance paid by employer). Falling behind on either reporting your payroll taxes and/or making these payments can result in serious penalties and interest. No extensions are permitted for these types of tax filings and payments.
Every January, your business must provide W-2 statements to each employee detailing the total amounts paid and withheld from their payroll checks, regardless of the total payroll size.
Ignoring or delaying any of these responsibilities could result in a lien on your business and/or personal liability to you for the unpaid taxes, penalties and interest. Administering payroll taxes can be extremely burdensome and take time away from focusing on and growing your own business. But it is mandatory. CAJ Tax Solutions can eliminate the confusion and burden associated with payroll tax reporting, and serve as “one-stop shopping” for all of your state and federal payroll tax compliance requirements, so you can focus on what you do best and keep your business growing. The following services are available:
- Pay statements (bi-weekly, twice monthly or monthly) for you and your employees showing the gross pay amount, amounts withheld and net amount paid
- Payroll tax reporting (bi-weekly, monthly or quarterly) to the Internal Revenue Service and state revenue and labor departments
- Coordinating submission of federal and state payroll tax payments
- Preparation of calendar showing payroll tax payment and filing deadlines
- Issuance and filing of annual W-2 statements for employees and 1099 statements for your independent contractors (1099 statements are required for independent contractors to whom you pay $600 or more during a calendar year)
- Federal and state payroll tax audit representation
CAJ Tax Solutions can facilitate electronic wage payments to employees through your business bank accounts and will provide you with the necessary information to ensure your business pays and records the correct amounts to your employees and forwards the appropriate amounts to each government agency.
Contact us for an appointment today – 646-374-2TAX (2829) or (847)-595-0TAX (0829).