Form 941 Late Filing Penalties

For each month that a Form 941 is not filed when required, there is a penalty of 5% of the unpaid tax due with that return.

The maximum penalty is generally 25% of the tax due. Also, for each month that the tax is paid late, a penalty of .5% per month of the amount of tax generally applies. The maximum amount of this penalty is also 25% of the tax due. In addition to any penalties, interest accrues from the due date ofthe tax on any unpaid balance.

Payroll, payroll taxes and workers compensation are facts of life for businesses with employees.  While employees may be absolutely critical to the success of your business, they consume valuable resources that increase your cost of doing business. Make a mistake in calculating payroll withholding taxes and/or paying payroll taxes and you have angry employees and the IRS to deal with.

As you proceed with your business planning, you would be wise to consider purchasing a payroll software program to help process your payroll. Take a look at our payroll software program page to get an idea what types of features and reporting capabilities are important before you buy.