Employers should consider filing payroll taxes electronically

Tired of paperwork? Business owners can now make taxes a little easier on themselves by filing payroll and employment taxes electronically.

According to the Internal Revenue Service, there are several benefits to filing these forms electronically:

• It saves a lot of time.
• It is more secure and accurate.
• The filer gets an email to confirm the IRS received the form within 24 hours.

There are Two Convenient Ways A Businesses Can e-File:

• Employers submitting the forms themselves will need to purchase IRS-approved software. There may be a fee to file electronically. Also, the software will require a signature by one of two ways:
  • The software instructs the user to apply for an online signature PIN. Taxpayers should allow at least 45 days to receive their PIN.
  • The user can scan and attach Form 8453-EMP, Employment Tax Declaration for an IRS e-file Return.
• Employers can have their tax professional file the form for them to save even more time. The Authorized IRS e-file Providers for Individuals and Businesses can help employers locate an Electronic Return Originator near them.

Here are Some of the Forms Employers Can e-File According to the Internal Revenue Service:

• Form 940, Employer’s Annual Federal Unemployment Tax Return

  Employers typically use this particular form to report the annual Federal Unemployment Tax Act tax.

• Form 941, Employer’s Quarterly Federal Tax Return

  Employers typically use this particular form to report income taxes, social security tax, or Medicare tax withheld from employees’ paychecks. They also use it to pay their portion of Social Security or Medicare tax.

• Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees

  Employers typically file this particular form if they paid wages to one or more farmworkers and the wages were subject to social security and Medicare taxes or federal income tax withholding.

• Form 944, Employer’s Annual Federal Tax Return

  Small employers typically use this particular form. These are employers whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less. These employers use this form to file and pay these taxes only once a year instead of every quarter.

• Form 945, Annual Return of Withheld Federal Income Tax

  Employers typically use this particular form to report federal income tax withheld from nonpayroll payments.