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January 31, April 30, July 31, October 31
Forms to file
Forms to file: Form 941 and Sch B
- Other tasks: Deposit FUTA tax due if it si more than $ 500.
- Pay undeposited income, social security, and medicare taxes with form 941 if your taotal tax liability for the quarter is less than $2,500. Assisted payroll service makes these deposits no matter what the amount.
Form 940 and Schedule A, Form 944
Provide each employee with a completed W-2 and provide 1099 vendors with Form 1099-Misc.
Request a new Form w-4 from employees who claimed exemption from withholding last year
Forms w-2 and w-3 (print deadline), forms 1099 misc and 1096
forms w-2 and w-3 (efile deadline)
Remind employees to sumit a new form w-4 if their withholding allowances have changed or will change for the next year.
Form w-5 expires. Eligible employees who want to recieve advance earned income credit (EIC) next year must give you a new form w-5
File form 1099- misc for each person to whom you have paid:
- at least $600 in rents, services, prizes and awards, other income payments, and medical and health care payments.
- at least $600 in remuneration to independent contractors
Annual summary and transmittal of US information returns)
Employers must file from 1096 when filing printed form 1099-Misc. If you file forms 1099-misc electronically you do not need to file form 1096 with the irs.
The form summarizes all information included on form 1099-misc by category.
Form w-2 (wages and tax statement)
Form w-2 is the end of year form you send to each employee and submit to federal, state, and local tax agencies. The form whos an employee's wages and taxes whheld for the year.
Form w-3 (transmittal of wage and tax statements)
Form w-3 is a summary of all the w-2 forms you are submitting to the federal goverment.
Form 940: Employer's Annual Federal Unemployment (FUTA) Return
Employer's annual federal unemployment tax return is an annual tax form on which you report your FUTA liability.
You must complete and file schedule A (form 940): Multi-state employer anc credit reduction information with if you were required to pay:
- State unemployment tax in more that one state
- wages in any state that is subject to credit reduction.
Form 941 (employer's quarterly federal tax return
is a quarterly payroll tax form on which you report:
- -empolyee wages you have paid
- -fideral income tax you withheld
- both the employer's and the employee's share of social security and medicare taxes
- You are required to file a schedule B with your form 941 if you are:
- -A semiweekly schedule depositor
- -A monthly schedule depositor who accumulated a $100,000 tax liability on any give day in the quarter.
Schedule B is used to report the employer's daily tax liability ( income tax withheld, plus both employee and employer social securty and medicare taxes, minus any advanced earned icome credit payments).
- Uncemployment compensation insurance
Amounts due to government agencies are based on
paycheck "date" (not pay period)
1. Payroll Taxes
a. Federal Withholding Tax
employee only paid tax, amount withheld is based on employee form w-4
b. Social Security Employee
4.2% of wages (up to $106,800 for 2011)
c. Social Security Employer
6.2% of wages (up to $106,800 wages for 2011)
d. Medicare Employee
1.45 of wages (no wage limit)
e. Medicare Employer
1.45% of wages (no wage limit)
i. Social Security
ER & EE + Medicare ER & EE= FICA
f. Federal unemployment Tax (FUTA)
employer only paid tax - .8% of the first $7,000 of wages ($56 per employee per year). Rate will increase to 6.2% if employer does not file on time and/or pay their state unemployment taxes on time.
g. State Unemployment Tax (SUTA) -
- employer only paid tax on first $9,500 of wages rate giveen to
- employers by Indiana Department of Workforce Development - new employers
- 2.5% rates will change based on the status of employer's account with
- the state. Employers will receive otification of rate changes.
http://www.in.gov/dwd/fiies/Employer Handbook 2010-ll-24.pdf
h. State Withholding Tax -
Employee only paid tax - 3.4% plus/minus adjustments based on employee form WH-4.
Form WH-4 - http://www.in.gov/dor/files/wh-4.pdf
i. County Withholding Tax-
employee only tax- amount withheld is based on county of residence as of January 1st, and employee form WH-4.
County withholding rates - http://www.in.gov/dor/files/dn01.pdf
2. Form 941 (Employer's Quarterly Federal Tax Return) Deposits and Filings
i. 941 Deposit =
Federal Withholding + Social Security EE portion + Social Security ER portion + Medicare EE portion + Medicare ER portion.
ii. Deposits will be made:
monthly or semiweekly - depending on prior periods-
client should recieve a letter from the iRS with their deposit schedule.
1. Monthly Depositor-
Due the 15th of the month for the total prior month
2. Semiweekly depositor-
if pay date is Wed, Thur, Fri - deposit due the following Wednesday.
3. Semiweekly Depositor - if Pay date is Sat, Sun, Mon, Tues-
Deposit due the following Friday.
iii. Make Deposits
1. Online using EFTPS
(Electronic Federal Tax Payment System)
2. At a financial institution (bank) authorized to accept
tax deposits using Form 8109 Federal Deposit Coupon
3. If Total amount due for quarter is less than
$2,500 you can pay the amount with a timely filed form 941.
b. Form 941 due by the last day of the
month following the end of a quarter
Instructions - http://www.irs.gov/pub/irs-pdf/i941.pdf7portlet-3
c. Form 944 may be required instead of 941 for employers whose
annual liability for social security, Medicare and federal income taxes is $1,000 or less.
- 1. Filed annually instead of quarterly
- 2. Employer will receive written notification if qualified to file Form 944
d. Publication 15 (Circular E)
Employer's Tax Guide
3. Form 940 (Employers Annual Federal Unemployment Tax Return) Deposits and Filings
i. 940 Deposit =
.8% of each employees first $7,000 in wages.
ii. Deposits are made quarterly
1. If the total amount of the liability in Quarter is $500 or less, you do not
need to make the deposit payment. You must carry the amount of tax liability forward until the cumulative tax is more than $500 - at that point (after payment) is again $500 or less , you do not need to make anouther deposit until the cumulative amount is greater than $500.
2. If undeposited FUTA is more than $500 on the last day of a quarter-
the deposit must be made by the last day of the month following the end of the quarter.
iii. Make Deposits
- 1. Online using EFTPS
- 2. At a financial institution (bank) authorized to accept tax deposits using Form 8109 Federal Tax Deposit Coupon.
Form 940 due by January 31st following the tax year
1. If the amount due on Form 940 is
$500 or less, you can pay the amount you can pay the amount with the return
ii. If the amount due on Form 940 is more than $500, you must
deposit the amount using EFTPS, a credit card or electronic funds withdrawal.
Form 940 Instructions (note these are for 2010)i. http://www.irs.fiov/instructions/i940/index.html
4. State Unemployment Tax (SUTA)
a. Tax and Wage Quarterly Reports:
(UC-1 and UC-5)
i. Quarterly reports will automatically be forwarded to the
business address of the employer.
ii. Percentage assigned by the
Indiana Dept. of Workforce Development
iii. Rate applied to the first
$9,500 in wages for each employee
iv. Forms are filed and tax is due
- 1. Due and payable by the last day of the month following the end of a quarter.
- 2. You can report and pay online- Employer self service.
Indiana State and County Withholding Tax
a. Employers will recieve the Indiana Employer's Withholding Tax Return - Form
i. Based on the amount of withholding tax, an employer will be required to file
monthly or quarterly or semi-annually.
1. Monthly Filers may also be required to file early
(the 20th of each month, instead of the end of a month)
2. Tax due must be paid with
3. INTax is Indiana's free online tax filing program
- a. File and pay withholding tax, sales tax, tire fee, fuel tax
- b. http://www.in.gov/dor/3963.htm
b. Employers are required to file an annual reconciliation form:
- i. Form WH-3
- 1. Include state copies of the W-2's
ii. Due by February 28th following a tax year