In a pinch on the 31st?
Sometimes business cash flow is a little tight and sometimes at the most inopportune time, such as “payroll tax payment day”. Please note that if any of the following four standard payroll tax payments are paid after January 31st
Form 941 – Federal payroll and withholding taxes
Form 940 – Federal unemployment insurance taxes
Form DR 1094 – Colorado withholding taxes
Form UITR-1 – Colorado unemployment insurance taxes
the late penalties can be substantial – 10% or more. Accordingly, I recommend that business owners consider paying the largest amount (typically Form 941 taxes) with a credit card via “official payments corp” whose website link is https://www.officialpayments.com/index.jsp.
Please note that you must pay a 2 to 3% convenience fee since government agencies do not eat this standard credit card merchant fee, but that’s considerably less than the potential government penalty. So while the business owner may now have an outstanding debt, it’s with a credit card company and not a government agency. Thus, the business owner is compliant in both filing required payroll tax returns and paying required payroll taxes in a timely manner.
A good thing indeed.
Posted by jsslusser on January 21st, 2010 at 8:47 pm
RBS WorldPay, in partnership with Value Payment Systems, now offers payUSAtax(TM) (www.payUSAtax.com), which lets individuals and businesses make various tax payments to the IRS with their MasterCard® and Discover® credit and debit cards as well as other payment methods for only 1.95% of their tax liability amount. The fee charged at payUSAtax is less than the fees offered by any other IRS Authorized Payment Service Provider.