940 & 941 Business Tax Solutions

Business taxes are confusing. There a hundreds of laws, each one depending on what type of business you operate, and it can be difficult to know which ones are meant for you. You probably need the help of a tax professional, in order to get the right forms filed at the time. New York Tax Attorney Service can get you connected with a tax professional to assist in your business tax need. Contact a tax consultant at (347) 535-4017 today.

What are 940 & 941 Business Taxes?

The form 940 is the Employer’s Federal Unemployment Tax Return, which is used to report your Annual Federal Tax Act, or FUTA, taxes. The FUTA tax supplies funds, along with any state unemployment tax, to pay unemployment compensation benefits to workers who are no longer employed. Employees are not responsible for paying these taxes, nor do they get deducted from the employees’ payroll. This is solely the responsibility of the employer. The form 941 is a report of earnings paid to employees and the employer withholding. This form is filed quarterly, or every 3 months. It also has the employer’s shares of the Medicare and Social Security taxes on it. It basically shows a picture of the finances being held out of your employees’ paychecks, so the IRS can see it, by the quarter. Pretty much every type of business had to file this form quarterly, with a very few exceptions.

Filing 940 & 941 Business Taxes Late

If you file either of these forms late, the IRS will assess fees and penalties to the amount you already owe. To make sure you do not incur any fees or penalties, make sure your taxes are filed and paid on time, and make sure your bank honors the payments. The last thing you want to do is pay late taxes, of any type, to the IRS. If you are late and receive a notice, contact the IRS or a tax professional, and depending on the reason, they may allow for the penalties to be removed, under reasonable-cause. If you do not have reasonable-cause, you may still be able to negotiate with the IRS as long as all your taxes are up to date and filed correctly. If you complete a certain form, the IRS will try and work out a payment plan with you for the delinquent taxes. They will want information on your assets, your expenses, and the income for the business. They will then look at all this information, to see what they think you can afford each month. The best option will probably be to make an installment agreement, and make all your monthly payments on time until paid in full.

Take Action Today

There are many forms that a business has to take care of. The two discussed, are the basic ones, of course. If you are confused by all the legal jargon and need a tax professional to get you on the right track, contact New York Tax Attorney Service now at (347) 535-4017.