Payroll Taxes

Beginning 1/1/11 you must use electronic funds transfer to make all federal tax deposits for employment tax's, corporation tax's and excise taxes.
Forms 8109- and 8109-B Federal Tax Deposit Coupons cannot be used after 12/31/10. Generally electronic funds transfer are made using the EFTPS system.
If you do not use EFTPS you can arrange for a trusted third party to make deposits on your behalf such as a payroll service or financial institution.
To enroll in EFTPS visit www.eftps.gov or call 1-800-555-4477 1-800-555-4477.

Form 8109-B - Federal Tax Deposit Coupon was used before 2011 to make deposits for payroll taxes, corporate income taxes, and other tax deposits.
IMPORTANT Effective for tax payments after January 1, 2011 the IRS will not accept deposit coupons. All tax deposit transactions must be made through the Electronic Federal Tax Payment System (EFTPS). Learn how to use EFTPS to make tax payments electronically.

Beginning 1/1/11 you must use electronic funds transfer to make all federal tax deposits for employment taxes, corporation tax's and excise taxes. Forms 8109- and 8109-B Federal Tax Deposit Coupons cannot be used after 12/31/10.
Generally electronic funds transfer is made using the EFTPS system. If you do not use EFTPS you can arrange for a trusted third party to make deposits on your behalf such as a payroll service or financial institution.
To enroll in EFTPS visit www.eftps.gov or call 1-800-555-4477 1-800-555-4477.
Speak to your local CPA about assisting you in signing up to the Federal Tax Payment System.

Use Form 945 to report Federal Income Tax withholding from non-payroll items such as pensions, annuities, IRA's, backup withholding and gambling winnings.
Use Form 8109 or the EFTPS system to deposit the tax if applicable.

Beginning 1/1/11 you must use electronic funds transfer to make all federal tax deposits for employment tax's, corporation tax's and excise taxes. Forms 8109- and 8109-B Federal Tax Deposit Coupons cannot be used after 12/31/10. Generally electronic funds transfer are made using the EFTPS system. If you do not use EFTPS you can arrange for a trusted third party to make deposits on your behalf such as a payroll service or financial institution. To enroll in EFTPS visit www.eftps.gov or call 1-800-555-4477. Speak to your local CPA about assisting you in signing up to the Federal Tax Payment System.

Payroll taxes include Social Security, Medicare, federal and state taxes that are withheld from an employee's check, as well as the taxes which are due by the employer for having employees.
For example, an employer must match the amount of Social Security and Medicare tax withheld and remit those taxes in a timely manner.

CPAs which service small businesses usually provide "post facto" payroll services. These include preparing the mandatory quarterly Federal form 941 and state wage reports. Other quarterly reports can also include state unemployment, disability and workers compensation reports.
These reports vary from state to state. CPAs can advise their client as to when tax payments must be made.
Penalties for making payments late can exceed any fee the CPA could charge for these services by thousands of dollars. Penalties for late payment of payroll taxes are extremely harsh. A CPA can advise you as to state and federal payroll requirements that apply to your given situation.
Annual routine audits by the state unemployment agency, the workers compensation and disability insurance company are handled by the CPA.
Some CPAs provide even more extensive day-to-day payroll services for their clients, but most CPAs prefer to work with a payroll service company for their larger clients. These payroll service companies take the responsibility for producing employee checks, withdrawing the money for the government from the client's bank account and making the timely tax payments to the government agencies.

A responsible party which includes the sole shareholder, officer, or authorized signatory is personally liable for the "trust funds".
Trust fund money includes payroll taxes that were withheld from the employees and sales tax which was collected from customers.
Business owners should never spend trust fund money, nor temporarily borrow this money. Business owners get into trouble this way every year.