How can an Employer avoid possible penalties and interest associated with Payroll Tax Returns?
An employer can avoid paying penalties and interest if that employer does all of the following:
1. If the Employer deposits or pay their payroll taxes when they are due, using EFTPS if required.
2. If the Employer files their fully completed Form 941 on time.
3. If the Employer reports their payroll tax liabilities accurately.
4. If the Employer submits valid checks for the payroll tax payments.
5. If the Employer furnishs accurate Forms W-2 to all of its employees.
6. If the Employer files "Form W-3" and "Copies A of Form W-2" with the Social Security Administration (SSA) on time and accurately.
Penalties and interest are charged on taxes paid late and returns filed late at a rate set by law