Any business that processes payroll in-house needs to become familiar with federal, state and any pertinent local tax forms. While each state issues their own tax forms, there are a few standard federal payroll forms a business may use to report payroll taxes. Federal Tax Form 940, Federal Tax Form 941 and Federal Tax Form 944 are of the most common federal tax forms. IRS Federal Tax Form 940 reports an employer’s Annual Federal Unemployment Tax liability to the IRS. You’re only exempt if you’re a household or agricultural employer, if you pay less than $1,500 a year in wages, or if you employ someone for less than 20 days each year. IRS Federal Tax Form 941 is the Employer’s Quarterly Federal Tax Return. You’re only exempt if you’re a household or agricultural employer, or if your business has an annual tax liability of less than $1,000 a year. Form 941 is used to report the federal income you’ve paid, as well as the Social Security and Medicare taxes both you and your employees have paid. If you run a small business with low federal tax liability, you’ll file Federal Tax Form 944. It allows business owners with an annual federal employment tax liability of less than $1,000 to file their taxes just once a year, as opposed to filing form 941 on a quarterly basis. This may apply to your business if you are exempt from federal income tax withholdings, or if you pay less than $6,500 in wages for the year.
 Payroll Definitions
Select the term and hit go to learn the terminology of payroll.
 |
 |
