Step 8: File Your Taxes
Monthly and Quarterly Liability Payments
As an employer, there are several federal and state tax filing requirements that apply to you. Businesses need to ensure the proper calculation of taxes and liabilities. While this can be done through software, such as QuickBooks, it is advisable to hire an accountant or payroll processing company.
New and existing employers should consult the IRS' Employer's Tax Guide to understand all federal tax filing requirements.
Monthly Federal Taxes: Generally, businesses with more than $1,600 in payroll liabilities per quarter must pay their federal payroll liabilities, federal withholding, social security, and Medicare monthly.
Employer's Quarterly Tax Return: Each quarter, employers who pay wages subject to income tax withholding, social security, and Medicare taxes must file IRS Form 941.
Employer's Annual Federal Tax Return: Small businesses with an annual income tax liability of $1,000 or less may file IRS Form 944.
Employer's Annual Federal Unemployment (FUTA) Tax Return, if you paid wages of $1,500 or more in any calendar quarter or you had one or more employees work for you in any 20 different weeks of the year, you must also file IRS Form 940.
With your quarterly taxes, you will also file your Florida Reemployment Tax. The Florida Department of Revenue will send out the necessary reporting form to all employers.
Federal Wage and Tax Statement (Form W-2)
On an annual basis, employers must report to the federal government wages paid and taxes withheld for each employee. This report is filed using Form W-2, Wage and Tax Statement.
Employers must send Copy A of the Form W-2 for each paid employee to the Social Security Administration (SSA) by the last day of February (or last day of March if you file electronically) to report the wages and taxes of your employees for the previous calendar year.
In addition, employers should send copies of Form W-2 to their employees by January 31 for the previous year.