Asheville Accounting and Taxes

Employment Taxes

If you have employees, you are responsible for Federal Income Tax Withholding, Social Security and Medicare taxes and Federal Unemployment Tax Act (FUTA). Report FUTA taxes on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return.  Form 944, Employer’s Annual Federal Tax Return

We know the rules for Adjusting Employment Taxes that are  New for 2009. Form 941 is now corrected with a new form 941X  the old Form 941 C is obsolete. Form 941, Employer's Quarterly Federal Tax Return. Remember if your payroll tax is less than $2500 for the quarter, you can pay it with your form 941, Employer's Quarterly Federal Tax Return, but you have to file on time for this rule to apply. This makes the due dates April 30th, July 31st, October 31st and January 31st critical for your business in North Carolina .   Federal dates are April 15th, July15th, October 15th and January 15th

Avoid the penalty for filing a late 941 tax return, there are also deposit penalties for making late deposits and for not depositing the proper amount. In addition there are penalties for willful failure to file returns and pay taxes when due, for filing false returns, and for submitting bad checks. Then interest is charged on the total of unpaid tax and the penalty.
 For most small businesses with two or more employees payments of these taxes must be made monthly or even more often.
 
We can help assure filing deadlines and deposit requirements are met and greatly streamline your business operations. But remember, you, the employer, are ultimately responsible for the payment of income tax withheld and both the employer and employee portions of social security and Medicare taxes.


TaxHelp@impuestosAsheville.com

We also offer Notary Services

Depositing Taxes: Remember you must deposit income tax withheld and both your own employer share and employee social security and Medicare taxes. We can make your deposits for you either electronically, using the Electronic Federal Tax Payment System (EFTPS), or by taking your deposit and Form 8109-B, Federal Tax Deposit Coupon to an authorized financial institution or a Federal Reserve bank serving our area.

IRS penalties are really stiff.  For example when a small business owner was late for three deposits of about $3000 each here is what it  cost.  The first time she was 7 days late,  that would be an additional $150 in penalties.  The second time she was 17 days late and paid $300. The last time she didn't pay it until after a bill from the IRS arrived and that time she paid $450, total  $900 in penalties.If you total all the penalties and interest plus the amount that you owe ,it adds up quickly. The IRS calculates the interest and penalties and sends you a bill. Bottom line, you'll pay a lot more to the IRS.  But you can avoid all this by filing and paying on time.