employment tax returns

Tips for Small Businesses When Filing Employment Tax Returns

Tax Law

The IRS requires all employers to report their employees’ wages and income taxes every year. If you are an employer, you are required to file Form 941, Employer’s Quarterly Federal Tax Return. Whether you are running a small business or managing payroll for your company, it is essential that you understand how to fill out this form and other necessities during tax season.

If you’re unsure where to start or you just don’t have time to manage your employment taxes this year, don’t hesitate to contact an employment tax returns attorney Sarasota, Florida. Here at the Law Offices of Mary E. King, we specialize in tax matters of all types and invite you to contact us if you need experienced guidance and direction.

The Basics of Filing

There are a lot of factors to consider when filing your taxes. Most importantly, you want to make sure you are thorough and complete because you can trust the IRS to be. Any discrepancies will come back on you, so it pays to get it right the first time. In doing so, you can avoid potential penalties and interest. 

As you get your filing efforts in order, there are some basics you can implement to ensure accuracy and peace of mind. Let’s examine these basics below before moving on to more advanced discussion.

Get Organized: Keep track of your employees’ names, Social Security numbers, birthdates, addresses, phone numbers, and wages paid each quarter on a spreadsheet. This should make filling out the form much easier.

Be Thorough: Read through the instructions carefully before completing the form to avoid errors. There are several different line items on Form 941 which correspond to different types of payments made during the quarter. 

Make sure that when you’re filling out each section of the form that you’re using the correct line item number in column B or column C for each type of payment made during that quarter.

Don’t Leave Fields Blank: Fill in Column A with zeros if there were no quarterly wages paid during that quarter, as this will help keep things organized when totaling up all your payments throughout the year in columns E-H(1). Moreover, you must also fill in columns I-J(2) with zeros if there were no total tax liability (taxable social security wages).

What Is Form 941?

Form 941 is a federal employment tax return that reports the wages and income taxes withheld from employees. It is filed quarterly by employers who must calculate and report employment taxes. Some organizations don’t have to file Form 941, such as:

1. Individuals who hire for housework
2. Those that hire farmworkers
3. Seasonal businesses

Keep in mind that if Form 941 applies to you and you don’t file it on time, you could be subject to penalties and interest charges. Follow these simple tips to help you file your employment tax returns:

1. Read the Instructions for Form 941 carefully and follow them step by step.
2. Make sure you have all your employee names and Social Security numbers.
3. Understand what type of taxes you need to pay and how much each tax is per person (e.g., federal income tax withholding, social security tax).
4. Fill out the form according to your understanding of what needs to be reported on the form and when it needs to be reported (quarterly or monthly).
5. Include any required attachments such as W-2s or 1099s with your form when you file it with the IRS.

Your diligence in completing Form 941 correctly will ensure a smooth filing process and help you stay on top of your tax responsibilities.

Storage Requirements for Records

The FLSA (Fair Labor Standards Act) requires that employers keep records of wages, hours, and other items for at least three years. These records are necessary for you to provide to the IRS if they ask for them. For Form 941, you’ll need to store your original tax return records and supporting documentation. If you no longer need these records, it’s highly recommended that you securely dispose of them by shredding them or burning them.

When Should You File?

When you file your Form 941, it’s due to the federal government every three months and must be filed by the last day of the appropriate month. If you are an employer, it is important that you complete this form on time. Failing to do so could result in penalties and fines. If you find that you are falling behind on your tax responsibilities, you should contact an employment tax returns attorney right away. 

They can help you get on track so you can avoid potential penalties. Failure to do so will make it that much harder to get out of debt, which is never good for your business. 

Contact the Law Offices of Mary E. King

Get the expert legal counsel you need to ensure timely and proper filing of your tax records. Contact the Law Offices of Mary E. King at 941-906-7585 or complete our contact form to get started.

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.

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