7 Payroll Forms the IRS Requires of Small Businesses

Knowing what forms the IRS requires of yoursmall businessis one of the most difficult aspects of running and processing payroll. There are so many different tax forms it can be confusing to know which ones apply to your small business. Here are seven payroll forms the IRS requires small businesses to file.


7 Payroll Forms the IRS Requires of Small Businesses 


Wage and Tax Statement: Form W-2

You must file a Form W-2 for each of your employees that have worked for your during the current calendar year. Use your payroll information from the current fiscal year to complete the form. IRS Form W-2 reports the tax amount you withheld from your employee’s paycheck to the government. You must then send Form W-2 to your employees and also to the Social Security Administration (SSA). You will then keep a copy of their W-2 on file for at least four years to avoid a penalty. 

Deadline: January 31st, 2020

Tax Forms 

Transmittal of Wage and Tax Statements: Form W-3

IRS Form W-3 is a summary of all your W-2 Forms. You, the employer will send Form W-3 along with Form W-2 to the Social Security Administration (SSA). Your transmittal Form W-3 is due on the same day as Form W-2. Your employees will not receive a Form W-3.

Deadline: January 31st, 2020


Employer’s Annual Federal Unemployment (FUTA) Tax Return: Form 940

The Federal Unemployment Tax Act funds are used by the government to oversee the state’s unemployment insurance programs. You, the employer, are responsible for paying FUTA, but this amount is not withheld from your employee’s paychecks. The due amount must be submitted quarterly.

IRS Form 940 must be filed once a year to report the FUTA payments that were made during the year. Use Form 940 Schedule A attachment to determine FUTA taxes on Form 940.

Deadline: January 31st, 2020


Employer’s Quarterly Federal Tax Return: Form 941

Each quarter employers must report employment taxes withheld from employee paychecks on IRS Form 941. This form contains income taxes, Social Security Tax, and Medicare tax withheld from employee wages.

Typically, businesses that pay wages for employment are required to quarterly file Form 941 and continue to do so even if there are no employees during select quarters. However, the exceptions are seasonal employers and agricultural employees, who are not required to file each quarter.

Deadline: January 31, April 30, July 31, and October 31

 Tax Form

Employer’s Annual Federal Tax Return: Form 944

Some small business employer might be required to report federal income taxes and federal insurance contribution taxes annually instead of on a quarterly basis. IRS Form 944 is only required by those who have been contacted by the IRS. If you are required to file Form 944, you are not required to file Form 941.

Deadline: January 31st, 2020


Health Coverage: Form 1095-B

If you offer your employees a self-insured healthcare plan, you are required to file IRS Form 1095-B. A self-insured healthcare plan is when your small business operates its own health insurance instead of purchasing from an insurer. This is more common with large companies, but some small businesses choose to go this route as a personal preference. 

Deadlines for Form 1095-B:

January 31:Paper Form 1095-B to employees

February 28:Paper File Form 1095-B

March 31:E-file Form 1095-B to the IRS


Transmittal of Health Coverage Information Returns: Form 1094-B

IRS Form 1094-B is an overview of the health insurance offered to employees. It is merely a summary of IRS Form 1095-B. The deadline for this form is the same as Form 1095-B. However, your employees will not receive a copy of this form.

Deadlines for Form 1094-B:

February 28: Paper File Form 1094-B

March 31: E-file Form 1094-B to the IRS


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