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The purpose of payroll taxes is to pay for the Social Security, Medicare and Unemployment benefits that your employees will receive if they become disabled, retire or if they are out of work and qualify. Most employers are required to pay these taxes as part of their obligation to provide a safe and healthy workplace for their employees.
It’s important to stay on top of these tax payments in order to avoid hefty fines. Failing to file and pay payroll taxes will result in penalties that include fines between $100-$200 per month for each form not filed or paid.
Tasks related to payroll taxes include:
-Filing Form 941, Employer’s Quarterly Federal Tax Return
-Filing Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return
-Filing Form 943, Employer’s Annual Federal Tax Return
-Filing Form 927, Return of Withheld Federal Income Tax
-File Form W-2, Wage and Tax Statement
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