Filing Payroll Taxes Electronically Using E-file

Business owners can simplify things by filing payroll taxes electronically. E-file software performs calculations and populates forms and schedules using a step-by-step process. It will also alert the filer if they are missing information which reduces the chances of receiving an IRS notice.

Benefits of Filing These Forms Electronically:

  • It saves time.
  • It’s secure and accurate.
  • The filer gets an email to confirm that the IRS received the form within 24 hours.

How Businesses Can E-file:

Employers can have their tax professional file the form. If employers submit the forms themselves, they must purchase IRS-approved software. The IRS website provides links to companies that have passed the IRS Assurance Testing System (ATS) requirements for Software Developers of electronic Employment Tax (94x MeF) Returns. Please note, however, that it is the filer’s responsibility to contact the provider to determine if the software meets their needs.

There may be a fee to file electronically. Also, the software will require a signature in one of two ways:

  • The software instructs the user to apply for an online signature PIN. Taxpayers should allow at least 45 days to receive their PIN.
  • The user can scan and attach Form 8453-EMP, Employment Tax Declaration for an IRS e-file Return.

Forms Employers Can E-file:

Form 940, Employer’s Annual Federal Unemployment Tax Return – Employers use this form to report annual Federal Unemployment Tax Act tax.

Form 941, Employer’s Quarterly Federal Tax Return – Employers use this form to report income taxes, social security tax or Medicare tax withheld from employees’ paychecks. They also use it to pay their portion of Social Security or Medicare tax.

Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees – Employers file this form if they paid wages to one or more farmworkers and the wages were subject to social security and Medicare taxes or federal income tax withholding.

Form 944, Employer’s Annual Federal Tax Return – Small employers use this form. These are employers whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less. These employers use this form to file and pay these taxes only once yearly instead of every quarter.

The employer must contact the IRS to request to file Form 944. Employers are not permitted to file Form 944 unless they are notified by the IRS.

Form 945, Annual Return of Withheld Federal Income Tax – Employers use this form to report federal income tax withheld from nonpayroll payments.

Do not hesitate to call our office if you need assistance filing payroll taxes electronically or have other questions or concerns about taxes and your small business.