Richardson TX - Consequences Late Filings/Deposits of Payroll Tax

Education & Training with Bob Jablonsky & Associates

Paying Employees is a critical function for business owners. If an employer doesn’t pay their employees timely, they will not have a staff to operate their business. What happens when your company pays its employees but doesn’t file Payroll Tax filings timely or doesn’t make deposits for payroll taxes timely? Since I’m in Richardson Texas, we will focus on penalties from the IRS and the State of Texas.


What Are the Most Common Penalties?

The IRS has Penalties for both Late Filing and Late Deposits -

  • Failure to File Penalties - For Quarterly Form 941 and Annual Form 940 are up to a maximum of 25%.
  • Failure to Make Payroll Deposits Timely - add up quickly with 15% if not paid within 10 days after the IRS bill is received for Form 941 Deposits.
  • Failure to Pay Timely - If not paid by the time the return is by the due date of .5% per month up to 25%.
  • Failure to File W-2’s on time range from $50 to $260 per Form filed late.


The State of Texas has similar penalties.

  • Late Filing Penalties range from .05% plus $30 if filed within 15 days of the due date to .35% plus $90 if filed more than 60 days late.
  • Late Payment Penalties are 1.5% of the tax amount per month up to 37.5%


Some Things to Keep in Mind

  • Particularly related to the IRS penalties, file timely even if you can’t pay. At 5% of the tax amount owed per month, these amounts add up quickly.
  • Depending on your position and role in the company, you can be held personally liable for the Trust Fund portions of Payroll Tax.


If You Need Help

If you have penalties related to Payroll tax filings and need help in resolving, call us at (972) 821-1991 or email with any questions.


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