Payroll Forms

Payroll forms for small business: federal and state requirements

When you run a business and pay people, your tax filing runs on two tracks: federal and state.

Federal forms cover Social Security and Medicare taxes (FICA), federal income tax withholding, and federal unemployment tax (FUTA). State forms cover state income tax withholding and state unemployment insurance (SUI). This varies based on where your business operates.

Your form set depends on your team structure, not your industry. A three-person consulting firm and a three-person landscaping crew file the same federal forms. What you file depends on whether you pay employees, independent contractors, or both.

From there, your forms divide into two categories: forms you complete when you bring on a new worker, and forms you file on a recurring quarterly or annual schedule.

Small business owners use SurePayroll By Paychex to automate payroll runs, manage tax filings, and pay employees and contractors.

Federal payroll forms you need to know  

You collect or file federal payroll forms on three schedules: at hire or engagement, quarterly, or annually. Here's the complete set organized by when they're due.

Forms to collect during onboarding

Form W-4: Employee’s Withholding Certificate

Your employee completes Form W-4 when they start so you know how much federal income tax to withhold from their wages. The choices your employee makes on the W-4 (filing status, dependents, additional withholding) directly determine your withholding calculation each pay period. You keep Form W-4 on file; don’t submit it to the IRS.

Form I-9: Employment Eligibility Verification

You and your new employee complete Form I-9 within three business days of their start date to verify they're authorized to work in the United States. Keep it on file for U.S. Immigration and Customs Enforcement (ICE) reviews and retain it for three years after the hire date or one year after termination, whichever is later.  

Direct deposit authorization

Your employee completes a direct deposit authorization form so wages go directly into their bank account. You keep the form on file. You don’t submit it to the IRS or any government agency.

Form W-9: Request for Taxpayer Identification Number

Independent contractors complete Form W-9 so you have their tax ID number for​ Form​ 1099​-NEC​ reporting at year end. You keep Form W-9; you don’t file it with the IRS. Collect it before you make your first payment to any contractor.

Forms you file quarterly

Form 941: Employer’s Quarterly Federal Tax Return

You file Form 941 every quarter to report wages paid, federal income tax withheld, and FICA taxes (Social Security and Medicare) for that quarter. Form 941 covers both employee and employer FICA contributions and matches them against your payroll tax deposits.  

Forms you file annually

Form 940: Annual Federal Unemployment Tax (FUTA) Return

You file Form 940 once per year to report and pay FUTA tax (the federal unemployment tax). FUTA is employer-only; you don’t withhold it from employee pay.  

The FUTA rate is 6% on the first $7,000 of each employee’s wages per year. If you pay into your state’s unemployment fund and your state doesn’t have any outstanding federal loans, you may qualify for a credit of up to 5.4%, bringing your actual FUTA rate down to 0.6%, or $42 per employee per year at most.  

Form 944: Annual Federal Tax Return (Small Employer Option)

If your annual employment tax liability is $1,000 or less, the IRS may designate you as a Form 944 filer. Form 944 means you file and pay your FICA and federal income tax withholding once per year instead of quarterly. The IRS notifies you if you qualify; you don’t request or sign up for Form 944 status. If you haven’t received a notification, file Form 941 quarterly.

Form W-2: Wage and Tax Statement

You issue Form W-2 to each employee to ​report ​their total wages and taxes withheld for the year. Your employees use Form W-2 to file their personal income tax returns. You also file copies with the Social Security Administration (SSA). If you file 10 or more W-2s, 1099s, or similar forms in a calendar year, you must file electronically. File with the SSA’s Business Services Online portal at no cost.

Form W-3: Transmittal of Wage and Tax Statements

Form W-3 transmits your Form W-2 copies to the SSA with a summary of total wages and withholding across your entire team.  

Form 1099-NEC: Nonemployee Compensation

You issue Form 1099-NEC to each independent contractor or freelancer you paid $2,000 or more during 2026. You don't withhold taxes from contractor payments; contractors handle their own federal and self-employment tax. If you file 10 or more 1099s, you must e-file through the IRS Information Returns Intake System (IRIS) portal.  

Form 1096: Annual Summary and Transmittal of U.S. Information Returns

If you file paper 1099-NECs, Form 1096 accompanies them to the IRS, summarizing the total number of forms and amounts reported. You don't need it if you e-file.

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Correction forms

Form 941-X / Form 944-X: Amended Returns

If you made an error on a previously filed Form 941 or Form 944 (incorrect wages, withholding amounts, or FICA contributions), file Form 941-X or Form 944-X to correct it as soon as possible. These forms don’t replace the original; they update specific line items.

When to file payroll forms: deadlines by form type

Set up your filing reminders using this checklist.

Note: These dates cover form filings. Payroll tax deposits run on a separate schedule through the Electronic Federal Tax Payment System (EFTPS) and are not included here.

New worker (before or within days of the start date)

• Form W-4: Employee completes before first paycheck

• Form I-9: Employee and employer completes within 3 business days of start date

• Form W-9: Contractor completes before first payment

Quarterly (due the last day of the month following each quarter-end)

• Form 941: April 30, July 31, October 31, January 31

Annually (due January 31)

• Form 940: Federal unemployment tax return

• Form W-2 and W-3: Employee wage statements to employees and the SSA

• Form 1099-NEC and Form 1096: Contractor payment reports (Form 1096 required for paper filers only)

If You made an error

• Form 941-X or Form 944-X: File as soon as you identify the mistake

Penalty rates by form type

IRS penalties vary by form and how late you file.  

If you miss a payroll tax deposit, the penalty scales with how many days it’s late: 2% for 1–5 days, 5% for 6–15 days, 10% for more than 15 days, and 15% after the IRS issues a notice.  

If you don't file a required return like Form 941 or Form 940, the penalty is 5% of unpaid tax per month, up to 25%.

W-2 and 1099-NEC penalties run $60 to $340 per form, depending on timing: $60 if corrected within 30 days of the due date, $130 between 31 days late and August 1, and $340 after August 1 or not filed at all. The IRS bills these separately from your regular tax bill.

State payroll forms and requirements

State payroll forms cover three obligations: income tax withholding, unemployment insurance, and new hire reporting. Requirements vary by state. Here's how each works.  

State income tax withholding works like the federal system: your employee completes a state equivalent of the W-4 during onboarding, you withhold state income tax from each paycheck based on their choices, and you file quarterly or monthly returns to pay what you’ve withheld to your state’s department of revenue.

State unemployment insurance (SUI), also called state unemployment tax, requires quarterly wage reports and tax payments. SUI rates vary by state and by your business’s unemployment claim history. You register for a SUI account with your state’s labor department when you hire your first employee.  

Nine states don’t impose a state income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you operate in one of these states, you’re not required to complete state income tax withholding forms, but you still file state unemployment insurance reports and pay SUI taxes.

Most states require you to report new employees to a designated state agency within a set number of days of hire, typically 20 days. New hire reporting is separate from your payroll tax filings and connects to the state’s child support system.  

State requirements and filing schedules vary. Some states offer annual or semi-annual filing if your withholding totals are low. For your state form requirements and due dates, go directly to your state department of revenue (income tax withholding) and your state department of labor (SUI and new hire reporting)

Managing payroll forms as your team grows

When your form calendar runs quarterly and annually, staying on schedule is the whole job.  

When you're managing quarterly filings, annual deadlines, and state tax filings across multiple due dates, SurePayroll® By Paychex payroll software automates payroll and payroll tax calculates calculations, payroll tax deposits and filings on your schedule, and W-2 and 1090-NEC form generation at year end.