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Re: trouble with 941 Jan 28, 2009 11:01 AM
Welcome to the Forum, rpotter,
Since you have made the payroll payments to your employees all the remains for you to do is to get all the 941s, the 940, and your state reporting taken care of.
First, prepare and file the 941s for 06/30/2008, 09/30/ 2008, and 12/31/2008 (due 02/02/2009). If possible send a check(s) in the amount of the tax for each return at the time you file it. You can file the returns with your nearest IRS field office which will stop the late filing/paying penalty clock from running, interest will continue to accrue until the liability for each quarter is paid. The IRS will compute all related penalties and interest for each quarter separately and send you a "bill" for those amounts. You will be paying both the employer's share and the employees' share of the 941 taxes. If you did not withold the income, social security, and medicaire taxes from the employee's paychecks, you may be held responsible for those amounts. You should talk with your CPA as how you are able to recover these employee amounts.
Second, prepare and file the Form 940 for the Federal Unemployment tax, this is 0.8% of the first $7,000.00 of the employee's wages or salary. This is an annual filing, (the return is due the January 31st each year) but you could be required to deposit this tax more frequuesntly depending upon the amount of the tax due.
Third you need to get square with your State and Local tax authorities for any State and Local Income and Unemployment taxes due.
You may have to play catch-up on the taxes, and your CPA can help you with the necessary cash flow planning.
Disclosure: Please note that is not a tax opinion covered by IRS Circular 230..
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