Payroll Tax Filing
Definition
The process of withholding, reporting, and remitting payroll taxes to federal and state agencies.
What is Payroll Tax Filing?
Employers are responsible for withholding income taxes, the Federal Insurance Contributions Act (FICA), unemployment insurance, and submitting those payments accurately and on time to the IRS and state agencies.
Why is Payroll Tax Filing Important for Employers?
- Avoids IRS fines and penalties for late or incorrect filings
- Maintains accurate recordkeeping needed for audits, end-of-year reporting, and employee W-2s
- Protects business credibility with employees and government agencies
- Employers are responsible for withholding and remitting both employee and employer portions of taxes
FAQs
What taxes must employers file through payroll?
Employers are responsible for federal income tax withholding, Social Security and Medicare (FICA), FUTA, and applicable state/local taxes.
How often are payroll taxes filed?
Depending on the size of your payroll, filings may be due monthly, semi-weekly, or quarterly to the IRS and state agencies.
What happens if payroll taxes are filed late or incorrectly?
Penalties can include interest charges, fines, and in severe cases, personal liability for responsible individuals.
How ExtensisHR Can Help
As your PEO, we safeguard your payroll tax responsibilities through:
- Handling payroll tax calculations, filings, and payments
- Monitoring changes in tax laws across jurisdictions
- Acting as your representative in the event of audits or errors
- Maintaining detailed, compliant payroll records