Okay, you've deducted payroll taxes from your employees' paychecks: now, it's time to remit them to the federal government. Typically, the IRS requires you to submit taxes monthly or semi-weekly. You can figure out which tax filing schedule you should adhere to on the IRS' site, or talk to an accountant for advice specific to your business and state.
If you use payroll software or an outsourced payroll company, you shouldn't have to worry about remembering deadlines. With both full-service software and outsourced payroll companies, the company will file taxes on your behalf, right on schedule. Some self-service software includes built-in tax reminders, but for an extra layer of security, make sure to stay on top of tax deadlines yourself.
Finally, at the end of the tax year, you need to send tax documents to your employees. Your hourly and salary employees need a W-2 Form, which tells them how much they made during the year and what they paid in taxes. Independent contractors need a 1099 Form, which lists the income they received from you so they file taxes accurately. Some employers send these forms out via mail, but others make them available over employee self-service portals so employees can access them on their own time.
You'll also need to file these forms with the federal government:
- W-2 forms, which report your employees' hours worked
- Form 940, which reports the amount you paid in FUTA taxes
- Form 941, which reports the amount you paid in FICA taxes
Some tax forms (and taxes) need to be filed monthly or quarterly. Others, like employee W-2s, should be filed at the end of the year only. Again, full-service software and outsourced companies take care of this aspect of payroll for you, and if you have additional tax deadline questions, reach out to an accountant.