Maintaining Payroll Tax Records & Avoiding Penalties

With the month of October coming to an end, I’m sure you’ve noticed that we’ve been focusing much of our attention here at ExpressTaxFilings on the upcoming Form 941 3rd quarter deadline.
Form 941, also known as the Employer’s Quarterly Return, is the form which is most used to report employee paycheck tax withholdings. Small businesses and organizations that have employees are responsible for withholding social security, income, and Medicare tax from the paychecks of each of their employees.
Unlike other tax returns that are only filed once a year, Form 941 has a total of four filing dates, hence the quarterly return title. The filing date for the months of July – September is next Tuesday, October 31. Yes, October 31, like in five days.
No need to worry or freak out; you can easily e-file Form 941 at in no time! 

How To File Form 941

In order to complete Form 941 you will need your employer details such as the name, EIN, and address. You will then need your employee count and the amount of Medicare and Social Security tax withheld. Following that, you will need to enter your deposit made to the IRS and your tax liability information. Lastly, you will enter your signing authority information and electronically sign your form. Just like that, you have filed your Form 941 return!

Moving forward, eliminate the reality of having a real-life Halloween nightmare by maintaining payroll tax records and avoiding penalties from the IRS with a few ExpressTaxFilings tips.

Maintaining Payroll Tax Records and Avoiding Penalties

Office Secretary Maintaining Payroll Tax Records
With Form 941 having multiple filing dates per year, it’s best to stay organized throughout the year so that your tax filings can be easy as 1-2-3. Once you’ve paid your payroll taxes and filed any and all necessary returns, the next thing you should do is maintain the records that substantiate your payroll taxes.
Taxpayers should retain filing records for at least four years after the due date of the return or the date that the taxes were paid, whichever comes last.

Types of Information to Keep

Information that you should retain include:
  • Name, Address and Social Security number of each employee
  • Amount and date of each payment of compensation
  • Period of service covered by each payment
  • Copies of every employee’s Form W-4
  • Tax Deposit Dates & Amounts
  • Copies of filed returns
  • Copies of undeliverable Form W-2
NOTE: All records must be available for IRS inspections at all times.

Failure to File Penalties

Missing the deadline will result in hefty penalties from the IRS. If you fail to file by the deadline you will face a monthly penalty of 5% of the taxes due per month until the penalty reaches 25%. If you fail to pay the amount you owe by the deadline you will be charged 2 to 15% of the total unpaid tax depending on how many days late your payment is.

How To File

Filing Form 941 with us is easy! Simply create your free ExpressTaxFilings account and select ‘Create New 941 Form”. Then all you have to do is follow the step-by-step instructions which clearly explain what information is required to be entered and where. You will be able to review your form and transmit it directly to the IRS before you know it!
Plus, the amazing, US-based ExpressTaxFilings support team is here to help. If you need any assistance give us a call Monday – Friday from 9 AM to 6 PM EST at 704.684.4751. You can also reach us via live chat and take advantage of our 24/7 email support at

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