November is almost here, which also means so is the third-quarter filing deadline for Form 941! If you are an employer that pays employees wages that are subject to income tax, Social Security tax, and Medicare taxes, you need to file Form 941. Form 941 is the Employer’s Quarterly Federal Tax Return.
Form 941 must be filed on a quarterly basis and the third-quarter deadline is only 3 business days away! Form 941 for Q3 is due on November 01, 2021. So, if you haven’t started filing your return yet, now is the time! It’s crucial that your business submits Form 941 on time in order to avoid penalties from the IRS.
With 123PayStubs, you can meet your deadline easily and transmit your return to the IRS securely. However, if you do miss an important IRS deadline, it’s important to know what penalties your business could incur. Here is an overview of the late filing penalties for Form 941:
Late Filing Penalties
Stuff comes up, time gets away from you, and all of a sudden, an important deadline has come and gone. If you do miss the IRS Form 941 deadline, don’t panic! If you have a valid reason for filing late, the IRS may waive the late filing penalties. However, if you did miss the deadline without a valid reason, it’s important to act quickly and file your return as soon as possible to minimize how much you’ll pay in penalties and interest. Here’s a quick overview of the late filing penalties for Form 941:
If you miss the filing deadline, you will initially incur a penalty of 5% of the total tax amount due with the return. You will also be penalized an additional 5% each month that you don’t file the return, for up to 5 months. Thus, the maximum penalty is 25% of the tax due.
In addition, you could also incur a penalty for failing to pay the tax on time. The IRS charges a 0.5% tax of the unpaid tax amount. This penalty also has a maximum of 25% of the unpaid tax. You’ll also be charged interest each month on the unpaid balance.
Failing to Pay Payroll Taxes
Including filing Form 941, employers are also responsible for depositing payroll taxes. Payroll taxes must be deposited on a set schedule such as semi-weekly or monthly. Thus, they cannot be paid quarterly with your Form 941. If an employer’s payroll taxes are paid late, the IRS will impose a penalty based on how much tax they owe and when they made the payment. This penalty is determined by the number of days your payment has been delayed.
The following chart shows the penalties your business may incur:
Number of Days the Payment is Delayed
One to five days
Six to fifteen days
Sixteen or more days
10 days after receiving notice from the IRS
Avoid PenaltiesWith 123PayStubs
In order to avoid penalties, it’s important that you deposit or pay your owed IRS taxes and file Form 941 by the correct deadline. Also, ensure that you are doing all of the following:
Accurately report your tax liability
Submit valid checks for tax payments
Provide accurate W-2s to your employees
Accurately file Form W-3 and Copy A of Forms W-2 with the SSA on time
These penalties are easily avoidable when you plan ahead of your filing deadline. Also, 123PayStubs makes e-filing your return simple and efficient. When filing Form 941 with 123PayStubs, you can take advantage of the built-in error check, accurate calculations, instant IRS filing status, and dedicated live customer support team.