Payroll Deposits
2008-11-24 by Eva RosenbergToday TaxMama hears from Michelle in California who wants to know . “If my payroll tax liabilities were more then $50,000 in 2007, and my payroll is done weekly on Monday, what day is my payroll tax due?”
Frankly Michelle,
I don’t know and I don’t care. Why?
I’ll tell you. I don’t follow those rules. As far as my clients go, I tell them that they must always deposit their payroll taxes the same day they issue the payroll checks. That way, they never get a chance to use the float and get into trouble.
To find the real rules, read the instructions in IRS Publication 15.
http://www.irs.gov/publications/p15/index.html
Or just follow my advice – deposit the money immediately. Not doing so is the first step to being in default on payroll taxes. The next step is the insolvency and failure of the business.
(Sorry, I am really, really tired of seeing all the good people who go through this cycle because they want to hold on to the payroll taxes for a few extra days or weeks to cover some urgent expenses – then didn’t have the money when the due date came. Or when the quarterlies were due. Or by the end of the year… I could introduce you to so many who spent 2,5,10 years sorting it all out.)
And remember, you can find answers to all kinds of questions about payroll taxes and other tax issues, free. Where? Where else? At TaxMama.com
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November 25th, 2008 at 02:09 am