8: Payment and Reporting – Part 4 of Federal Payroll Tax Series

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How and when are the taxes paid and reported?

This is the forth episode of a six-part series on Federal payroll taxes. If you haven’t listened to the first two episodes already, I would recommend that you go back and listen to episode 5, which is the first part in the series.

Tax Payments

  • The federal income tax and the social security and medicare taxes (including the employer social security and medicare matching taxes) are paid either monthly or semi-weekly.
    • If paid monthly, they are due on the 15th of the month for the previous month’s liability.
    • If paid semi-weekly, they are due on either Wednesday or Friday, depending upon what day you paid the wages.
    • If your tax liability during either the monthly or semi-weekly liability periods reaches or exceeds $100,000, the tax is due the next day.
  • Federal unemployment taxes (“FUTA”), are due quarterly on the last day of the month following the end of the quarter.

Tax Reporting

  • The federal income tax, social security and medicare taxes are reported on Form 941 and the return is due on the last day of the month following the quarter end.
  • The federal unemployment tax is reported annually on form 940

Tax Reporting

The Tax Foundation says that “Americans spent over 3.24 billion hours every year preparing and filing federal tax returns.

It costs $37 billion each year to comply. That doesn’t include the actual tax payments, that’s just the cost to account for, pay over and report the taxes. Now add state and local taxes to that equation and you have insanity.

Resources (clickable)

The Cost of Tax Compliance charts by Tax Foundation


About the author, Thomas

I have 20 of years insurance industry experience in C-level management, focusing on all aspects of workers compensation, risk management, loss control, employee benefits, HR, payroll and professional employer organization (“PEO”) operations. Currently, I am the owner and CEO of Humanly HR, and founder and host of SmallBiz Brainiac; a podcast providing employer intelligence to small business owners.

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