As a small business owner were you aware that “According to the IRS, 40% of small businesses pay an average penalty of $845 per year for the late or incorrect payroll filings and payments”
Stated by Craig Hurlbut, Director of payroll and U.S payroll tax expert for wave
TOP 3 TAX PENALTIES FOR NON-PAYROLL FILING COMPLIANCE
- Failure-to-Deposit: percentage rates range from 2% for up to five days late, to 15% for more than ten days after your first IRS bill.
- Failure-to-File: penalty is 4.5% per month of unpaid tax, up to 22.5% of your unpaid taxes.
- Failure-to-Pay: penalty is 0.5% per month of unpaid tax, then 1% per month after your Notice of Intent to Levy, up to 25% of your unpaid taxes.
In order to avoid late penalties and fines, it is mandatory that the staff accountant or payroll accountant get a calendar from the IRS website and the States website which shows the exact due date of when the Federal and State deposits are due, and also put a reminder on a calendar etc. to avoid late fees and penalties.