How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 11147
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Finance Question Here...
Lane is online now
A new question is answered every 9 seconds

I have a question regarding one of my clients she open this

Customer Question

Hi good afternoon, I have a question regarding one of my clients she open this restaurant in oct 2015 she paid to the employees and withhold de medicare and social security my question it is now how she can report that, is there a way to do it electronically , to send the payments to the irs and I can issue the w2 at this website https://www.tax1099.com/Account/Login?ReturnUrl=%2fProtected%2fviewform
Submitted: 1 year ago.
Category: Finance
Expert:  BK-CPA replied 1 year ago.

Hello and thank you for your question.

These taxes are generally reported on Form 941, which needs to be filed quarterly. If her liability is $1,000 or less, she may be able to use Form 944 instead of Forms 941.

Generally, she would also have obligations to file payroll tax returns for state withholding, state unemployment, and federal unemployment. In a case where no Forms 941/944 have been filed, it's likely these are being neglected too. State withholding may be reported and paid along with sales tax depending on the state, so there's another thing to consider.

While it's beyond the scope of this question to go walking through all the steps to properly file payroll tax returns, especially for tipped employees because there are additional reporting requirements, I think it's safe to say this person needs some professional help. If the client doesn't want to pay for ongoing assistance with payroll tax reporting, then at least get some help in learning initially.

There is further a tax credit employers can claim for taxes paid on employee tips. It's often missed, fyi.

Most payroll taxes can be paid electronically. To pay federal withholding, social security, and Medicare taxes electronically, your client needs to register at www.eftps.gov. Your client can also use that website to pay federal unemployment tax (Form 940).

I hope this helps.

Customer: replied 1 year ago.
o.k i will try to help her and pay all the liability , not sure if we still have time to do it electronically but yes the liability was less than 1000 thousand dlls.
Expert:  BK-CPA replied 1 year ago.

Form 944 can be filed electronically, but it's easier just to fill out the form and send it in at this point due the time required to get set up for electronic filing / paying electronically. Registering for eftps.gov takes some time because an access pin has to be sent by mail.

If this was helpful, please kindly take a moment to provide feedback. Thank you again for your question.

Customer: replied 1 year ago.
if she paid more than that do i need to send 941 right ?
Expert:  BK-CPA replied 1 year ago.

I'm not sure what amount you are asking about. I'm just going to opt out at this point.

Expert:  Lane replied 1 year ago.

Hi,

...

I think I can help ... the 1000 threshhold has to do with 944 vs 941

...

See this from IRS:

...

Employers notified to file Form 944, whose businesses grow during the year and whose employment tax liability exceeds the $1,000 threshold, must still file Form 944 for the year.

...

Employers who exceed the eligibility threshold must not file Form 941 until the IRS notifies them that their filing requirement has been changed to Form 941.

...

For information on requesting to file Forms 941 quarterly or Form 944 annually to report your social security, Medicare, and withheld federal income taxes, refer to the Form 944 Instructions (PDF) and the Form 941 Instructions (PDF).

Depositing Taxes

Related Finance Questions