Employers Benefit from Electronically Submitted Payroll Tax

July 12th, 2019

Are your clients still using paper forms to file employment and payroll taxes? The Internal Revenue Service is once again encouraging businesses to e-file tax forms in a recent tax tip.

The benefits of filing electronically include time savings, security, and accuracy, in addition to a confirmation that the IRS received their forms within 24 hours of filing them.

Some of the forms employers can e-file include:

  • 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 – Use this form to report income taxes, social security tax, or Medicare tax withheld from employee's paychecks. They also use it to pay the employer's portion of social security or Medicare tax.
  • Form 943, Employer's Annual Federal Tax Return for Agricultural Employees – This form is for employers who 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 – This form is for employers whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less.
  • Form 945, Annual Return of Withheld Federal Income Tax – Employers use this form to report federal income tax withheld from nonpayroll payments.

The IRS says employers who want to e-file the forms themselves will need to purchase IRS-approved software, which may require a fee to file. Find out more about software requirements.

More Resources

IRS Tax Calendar for Businesses and Self-Employed