Are You Filing the Right Taxes for your MK Business?
Did you know that if you have employed an assistant or two for your MK business, you will be required to file IRS Form 941? That’s right! As an employer, you are responsible for withholding federal income tax, social security tax, and Medicare tax from your employee's paycheck and you must report this to the IRS with Form 941. This form is also used to calculate your portion of social security and Medicare tax. As an MK director or NSD, we understand you did not start your business to be consistently filing IRS tax forms which is why we are sharing a quick IRS Form 941 overview.
Do you Need to File IRS Form 941? When is it due?
If you pay employment wages to your assistant, you are required to file quarterly and must continue to do so even if there are periods without employees. The form that is used to report this information to the IRS is Form 941 and for the 3rd quarter tax period, this form is due no later than October 31st.
What is the 94x Series?
So, the traditional 941 Form is used to report employment taxes for workers within the United States. The 94x Series is comprised of three separate forms which must be filed by employers based on the location of the business within the United States.
Form 941-SS is the US Territories Employer's Quarterly Federal Tax Return for wage-paying employers in Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, and the US Virgin Islands.
IRS Form 941-PR is Puerto Rico's Employer’s Quarterly Federal Tax Return that must be filed by wage-paying employers. Both IRS Form 941-SS and Form 941-PR follow the same deadlines and penalties as the traditional Quarterly Report. So for third-quarter filing, the appropriate form must be filed by October 31st.
What if I Fail to File?
If you are an employer and fail to file on time, it will initially result in a 5% penalty based on the amount of the tax return each month it remains unsubmitted. This penalty will thankfully be capped at 25%.
If you fail to pay your owed taxes or submit only a partial payment, you will be heavily penalized and, as a result, be charged 2 - 15% of the unpaid tax owed based on the number of days it remains unpaid.
Where Can I File?
You can easily take care of your quarterly tax obligations online using our sister product, ExpressTaxFilings. ExpressTaxFilings is trusted by thousands of small business owners (like yourself) as an IRS-authorized integrated solution for generating and transmitting tax Forms. If you need to e-file any 94x Series Forms, ExpressTaxFilings provides you with a step-by-step, interview-style process with built-in error checking. Sign-up for a free account and see how easy it is to file the right tax forms for your MK business!
Post a Comment