Payroll Accounting


You might figure out how much you need to withhold from the employee paycheck. Yet, what will you do with money that you withhold? Right, you need to send and report employment taxes to the government taxes agencies. But, when do you deposit and report employment taxes? You need not to worry since here are some information about when to deposit and report employment taxes.

Deposit and Report employment taxes

Here is some information on the employment taxes due dates for reporting and depositing. It includes some federal incomes tax, FUTA, and Social Security and Medicare Taxes. But you need to be careful since the employment tax might have different deadline for reporting and depositing.

Federal Income Taxes Withholding

1 ) Depositing


For the federal income taxes withholding, you need to deposit either semiweekly or monthly. You can determine the frequency of the depositing before the beginning of the each year. The schedule of the depositing you have made is according to the total tax liability which is reported on form 941 which is during the four quarter period of IRS Lookback.

For example, if you report amount of money, let’s say $50,000 in the taxes during the period of the lookback, you will become monthly depositor. If you have Report employment taxes which is reported more than for example $50,000 in the taxes, then you are called as semiweekly depositor. The total taxes liability will include the federal income taxes, Medicare tax and Social Security tax.

So, let’s say you run new business. And if it is the case, you will be automatically a monthly depositor for the first year you have. The monthly depositors will be due on the date of 15 for the following month. The employment taxes deposit and report payday will fall on Wednesday, Thursday and Friday. Then, the deposit taxes will be by the following Wednesday. When the payday falls on Monday, Sunday, Tuesday and Saturday, the following Friday will be the deposit tax day.

The schedule of deposit you have can possibly change from the year to another year. So, you need to make sure that you examine carefully the period of the lookback. What you need to understand when depositing is that when depositing the federal income taxes, you should make electronic funds transfers by using EFTPS, a payroll taxes filling service or tax professional.

2 ) Reporting


You need to report the federal incomes taxes withhold on the Form 941. You should file the Form 941 each of the quarter. The form will be due on last day of each month that follows the each quarter. The due date of the Form 941 is as follows; the quarter 1: April 30, the quarter 2: July 31, the quarter 3: October 31, and the last quarter is on January 31.

So, are you now still confused on when to deposit and report the employment taxes? Hopefully the information of due date and what status you will have above will help you a lot understand more about depositing and reporting the employment taxes. Good luck then!

Description: Report employment taxes have two things to do, the first one is the depositing method and the second is the reporting method. Each has different due date and functions also status.

How important is the payroll accounting system? You shouldn’t be too hurry to give answers. Regardless you have you small or medium business, those who know what kind of system this is will recommend you to use it.

However, should you hear their voice without knowing the proof? In order that you are able to give correct answer, possibly here are the facts about the importance of this system for small and medium business.

To Avoid Fine

Payroll Accounting System 1

Is there any correlation between payroll accounting system and fine? Indeed. You are living and ruining the business in the company which has law. The government has particular regulation to any business, either small, medium, or big business.

One of the regulations is about tax. If you have small or medium business, you surely need to pay tax, don’t you? However, if you fail to make correct calculation of the tax that you have to pay, of course you will get fine.

In order to avoid this bad thing, payroll accounting system is required. This is kind of system which will reduce the risk of false calculation. Therefore, your company doesn’t need to pay fine.

Save Budget

Payroll Accounting System 2

The big issue, either for small or medium business, is about how to save the budget. Many companies are broke because to fail to manage the budget. They cannot make the most of budget that they have.

Will you pay the salary for the employee who doesn’t give any benefit for the company? Of course not. And this is your homework on how to find the one who is far away from the company expectation. You shouldn’t waste the money to hire that employee.

Manage Employee-Related Activity

Payroll Accounting System 3

What is the toughest thing to do? Many people say managing people with different activity. If you have small business, possibly you will not feel that way. However, you will feel it when the business is growing up. The number of employee increases and the task to manage them must be much more difficult.

Payroll accounting system is the solution. This system will make HR department able to manage all employees in the company. Using this system, they will be much easier to calculate a lot of components related to salary such as loan, reimbursement, allowance, and many others.

It is not only about salary for each employee. With those data, you also will be able to see the productivity of each employee.

Response to the Change

Payroll Accounting System 4

Of course there is change especially related to HR department task. And frequently, the task of HR department is overload when there is change. They have to adapt and it usually takes time.

To response to the change, you can make the most of this payroll accounting system. Make your HR department handle the change of the task easily. Since HR takes an important role for the company. They don’t only manage the allowance, but also all information related to the development of the company.

Now, you get the answer how importance the payroll accounting system for small and medium business. Make a good move forward by taking the advantage of this system.