PAYROLL TAX ISSUES

The Failure to Deposit Penalty applies to employers that don’t make employment tax deposits:

•On time

•In the right amount

•In the right way

Employer-paid taxes include federal income tax, Social Security and Medicare taxes and Federal Unemployment Tax. Employers must send employment tax deposits to the IRS on a monthly or semi-weekly schedule.

The penalty you pay is a percentage of the taxes you did not deposit on time, in the right amount or in the right way.

The Failure to Deposit Penalty based on the number of calendar days your deposit is late, starting from its due date.