Tips for Small Businesses When Filing Employment Tax Returns

Whether you are a recent startup or you’ve been running a small business for years, there are essential tips you can employ to ensure an easier time filing your employment tax returns. We can all use a helping hand come tax time, and these tips are sure to make your life easier. 

When you know the right tips to implement when preparing to file your employment tax returns, you can enjoy a smoother tax season. At the Law Offices of Mary E. King, our goal is to assist our clients in overcoming their tax struggles, and we’re confident that these handy tips will do just that.

As always, don’t hesitate to contact tax return preparation lawyer Mary King if you need help with any of your tax matters. Mary’s experience and dedication ensures that you follow the proper channels in resolving your tax-related needs.

Not to be confused with payroll taxes, employment taxes are simply any taxes that concern your employees, such as withheld federal income taxes that you pay to the IRS on behalf of your employees. Additional employment taxes include FICA , FUTA, and Medicare taxes.

Now that you know what employment taxes are, let’s explore some helpful tips to streamline your tax efforts this coming tax season. 

First, you want to make sure that you fill out and complete the following forms:

IRS Form 941 (Quarterly Employer Tax Return)

IRS Form 943 (Annual Agriculture Employees)

The primary purpose of this form is so that you can report wages you paid, the tips earned by your employees, and calculate the federal income amount, as well as the social security and Medicare taxes that you should withhold and owe the IRS. Moreover, you may consider other forms of payments, like the COBRA insurance renewal assistance that you provide.

Please note that you have to submit a separate 941 Form every quarter, and the returns must be submitted by the last day of the month and after the end of every quarter (April 30 th , July 31 st , October 31 st , and January 31 st of each year).

FUTA is Federal Unemployment Tax. You must pay this if:

1. You’re an employer who paid $1,500+ during any quarter of the calendar of the previous year
2. You have employees who have worked for a minimum of 20 weeks or more

You will need to report the correct amount of taxes due that year by January 31 st using Form 940. Please note that you must figure out how much taxes are due each quarter and pay on them whenever the cumulative annual amount reaches $500. If you owe less than $500 after one quarter, be sure to carry it over to the following quarter and reassess it then.

EFTPS is the Electronic Federal Tax Payment System. The government mandates that all employers must use this system when depositing taxes. Please note that you aren’t permitted to mail checks. If you have not been automatically registered by the IRS, you can make an account with EFTPS by going to www.eftps.gov and clicking “Enrollment.” When you arrive on the following page, click on the box labeled “Business.”

Be sure that you have your EIN (Employer Identification Number in front of you, as well as your company’s bank information (account and routing number) if you wish to use it to make payments. Also, make sure you register at least two weeks before the payment deadline, as that’s how long it takes to get your PIN.

You may pay your employee income tax, social security tax, Medicare tax, and unemployment tax that you calculated on the following IRS Forms:

1. Form 940
2. Form 941
3. Form 943

At the bottom of the EFTPS page, click “Make a Payment.” You will then be prompted to plug in your EIN and PIN, followed by your password. From there, your bank will deduct the requested amount from your company bank account. Your payment will then be sent to the IRS.

After completing your payment, you’ll get a tracking number, which you should keep in your records. Please make sure to complete the EFTPS payment before 8 pm. EST one day before your payment due date to ensure that you receive the credit for making timely deposits.

We invite you to contact t ax return preparation lawyer Mary E. King if you need assistance filing your employment taxes. She has extensive experience successfully handling tax matters of all kinds and can ensure that you are ready for the next tax season.

To request the services of the Law Offices of Mary King, please fill out our online contact form or call us directly at 941-906-7585.

The information in this blog post is for reference only and not legal advice. As such, you should not decide whether to contact a lawyer based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.