Employer Payroll Tax Penalities

Paying your payroll taxes late – a week, a month or a quarter, comes with stiff penalties. Continue this for multiple quarters, you now have compounded penalties owed with high interest.

The IRS will assess the:

  • Failure to File Penalty: The 941 tax return was not filed on time.
  • Failure to Deposit Penalty: Not all of the 941 deposits were received.
  • Failure to Deposit via EFTPS: A check was written to pay the 941 taxes and it has to be paid through EFTPS
  • Failure to Pay Penalty: Failure to pay all the taxes by the end of the due date.

On top of all the penalties, interest continues with an additional interest charged on unpaid penalties.

An actual company’s penalties:

James and James Warehousing, LLC miscalculated their cash flow and they could not pay their 941 taxes. On 941 taxes due of $2,454 by March 31st, 2014, by July 15th, 2014, the company owed $711 in penalties and $96 in interest. They owe 33% more to the IRS!

Are you receiving penalty notices? Has the Revenue Officer knocked at your door? This can be resolved in many ways. We work with the IRS on a regular basis. 

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