On Form 8109, be sure to fill in the circle next to 941 circle next to the appropriate quarter. NOTE: The government looks exclusively at the date on which checks are given to employees to determine the period in which they should be reported. If you pay employees on July 1st for work done in June, they are paid in July (which is in the 3rd quarter) from the government’s point of view. Federal Tax Deposits are normally required on a monthly basis. When you are starting your business, you could technically deposit less frequently but it is much better to deposit each month. Penalties for late deposits are substantial, and the IRS is very good at tracking down late payments. As your business grows, you may be required to deposit more frequently, but by that time, you will know more about federal deposit regulations than you ever dreamed you would. 12.5.1. State and Local Taxes Payable State and Local Taxes Payable are normally paid along with monthly or quarterly reports. Check with your accountant for regulations in your state and territory. 12.6 File Federal, State, and Local Reports You must file the Employer’s Quarterly Federal Tax Return (Form 941) every quarter (by the 15th of the month following). If you have made all Federal Tax Deposits properly, you need not include payment with this return. If any payment is owed, it must be included. State and Local returns are normally required on a monthly or quarterly basis and normally must be accompanied by payment of the appropriate taxes. Check with your accountant for the reporting and payment requirements of your state or locality. 12.7 Deposit Federal Unemployment Taxes Deposit Federal Unemployment Taxes every quarter using the same form you use for Federal 941 Tax Deposits (Form 8109 - Federal Tax Deposit Coupon). Be sure to fill in the circles next to 940 (the type of tax payment), and next to the appropriate quarter. When you are starting your business, you could technically deposit less frequently, but it is much better to get into the habit of depositing each quarter. 12.8 Deposit Federal Unemployment Taxes State Unemployment Taxes are normally paid every quarter on a separate form from your State Income Tax withheld. Some states also require a separate report that itemizes gross payroll for all employees for the quarter. This report is sometimes sent to a separate address. Ask your accountant for deposit and filing requirements for your state. (the type of tax payment), and the
MOLLY MAID General Operations Manual Copyright 2015, Molly Maid, Inc.
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