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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..
Ok, Thank you. Thank really helps.
You are quite welcome, If I can be of any assistance to you please email me direct. All my work is done on the internet and I work with businesses across the country using a paperless document management system.
Richard Robinson, CPA
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SBOCTeam at Jan 27, 2009 3:11 PM+
diving in and asking that first question, complete your profile. Giving
some background about yourself helps other Community members when
trying to answer your small business questions. Its a quick and easy
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I am new to the forum. I am need of some help. We are new business that hired employees for a portion of our business in May 08. I paid payroll. However, my mother became ill with cancer and I was unable to pay attention to the business as I was the caretaker for her and she passed away. To make a long story short, payroll was paid to the employees, however no payments were made on my 941s, etc. Now I am getting ready to file taxes, etc. I am not sure how to figure these back owed taxes and how do I take care of them now? Help.