Free E-mail Newsletter Monthly updates on developments affecting small businesses. The IRS's payroll tax deposit rules are becoming more and more strict with each passing year. Even the most careful small business owners can fall prey to one of the IRS's costly penalties for failing to deposit withheld payroll taxes on time. The IRS isn't well know for accepting excuses, either. If you've had the pleasure of paying one of the IRS's penalties, you may find comfort in knowing you're not alone.
Recent statistics indicate that one out of every three businesses pays a penalty each year.
A number of businesses specialize in processing payroll, and can help you avoid costly payroll penalties and free you of many other payroll duties. In addition to the above items, some payroll processing businesses will even pay any IRS penalties attributable to errors they make in processing your payroll, or in payroll reporting for your business. Include the time spent computing and writing payroll checks, filing payroll tax forms, and preparing W-2s. All Rights Reserved.