Small Business

Employers must give or mail employees' copies B, C and 2 of Form W-2 on or before January 31st of the following calendar year. A W-2 must be issued if any of the following criteria exists: if there was any withholding; if wages exceed the amount of one exemption. If any employee was paid more than $600; or to any person you paid an amount for services if you are in a trade or business. An employer may be subject to penalties for non-compliance.

Generally, employees are defined either under common law or under special statutes for certain situations.
Generally, anyone who performs services is an employee if you, as an employer, can control what will be done and how it will be done.
This is so even when you give the employee freedom of action. What matters is that you have the legal right to control the method and result of the services.
This definition is important in relationship to classifying workers as employees or independent contractors.
In general, people in business for themselves are not employees. For example, doctors, lawyers, construction contractors and others in an independent trade in which they offer their services to the public are usually not employees.
You are not liable for employment taxes on the payments to non-employees such as independent contractors.

The Annual Federal Unemployment Tax (FUTA) form is due by January 31st, or if all deposits were filed timely, you would then have 10 additional days.

The W-3 is a summary of an employer's W-2s for the calendar year. Employers and other payers must file Transmittal of Income Tax and Tax Statements, or Form W-3 with Copy A of Form W-2 by the last day in February.
The form is filed with: The Social Security Administration, Data Operations Center, Wilkes-Barre, PA 18769-0001. (Certified mail use 18769-0002)

Corrections are made using Form W-2C and Form W-3C. A copy of the corrected version should be given to the employee and also sent to the Social Security Administration.

Form 941 and Annual Form 944 will still have to be filed when no wages are paid unless you are considered a seasonal employer, farm employer or household employer.

if the tax liability for a quarter is less than $2,500, it may be paid with the quarterly filing of Form 941. If it is $2,500 or more, then it must be deposited on either a monthly or semi-monthly basis.
The IRS will notify you each November as to whether you are a monthly or semi-monthly depositor. The IRS uses a 1 year look back period ending the preceding June 30th.

Depositing FUTA tax in the bank with coupons has stopped.
Use IRS E-file to file and EFTPS to pay. Go to IRS.gov to E-file and www.eftps.gov or call 1-800-555-4477 to call for EFTPS The Federal unemployment Tax (FUTA)is reported and filed separately from the Employer's Quarterly Federal Tax Return Form 941.

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.