This in turn can harm customer satisfaction and loyalty, eventually destroying profits and sometimes threatening the business's survival. The owner understands Form 941. Form 941 is used to report quarterly the income tax and Social Security that the business withholds from the employee's wages and the matching Social Security contribution paid by the employer. Not doing this as required by law is costly in terms of penalties and interest assessed by the government. The owner makes deposits on time to avoid penalties.
Penalties are costly and take away from profits.
In several of the SBI cases, late deposits had become so chronic, and the penalties so high, that the businesses were financially threatened. Chronic penalties for late deposits are a sure sign of poor business practices and can be a warning sign to lending institutions that the business is heading for financial trouble, making it highly unlikely the owner will be able to get a loan when needed. The owner provides W-2 information. Not providing correct W-2 information is a sure way to get into trouble with the Internal Revenue Service. Providing the correct information takes little time and prevents costly delays later.