Beginning on January 1, 2011 all payroll taxes MUST be paid to the IRS electronically.
Congress has mandated that all companies that have payroll taxes in excess of $2,500 per quarter MUST pay their taxes on line via EFTPS (Electronic Federal Tax Payment System). Almost every business that we assist has payroll taxes in excess of $2,500. Thus, this will effect almost everyone of you who owns your own business and has employees. If you are not already on the EFTPS system, you will need to register yourself BEFORE the end of the year so that your account is up and running on January 1, 2011.
Payroll Taxes Modification
No longer will you be able to take your payroll tax deposits to the bank with form 8109. Instead, you will go on line to EFTPS where you will enter the amount of payroll taxes you are paying and the date it is to be withdrawn from your bank. You MUST make your entry at least 24 hours BEFORE the date the amount is to be withdrawn. For those who are computer challenged, this is really not as hard as it may seem.
Contact us for your Payroll Taxes
If you need help with setting up your EFTPS account, please give us a call and ask to speak to Kathy Smith, CPA. She has been through this with other clients many times. She can help you too!
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