(Mistake #6 in a Series of 7) It’s easy to get so busy with your business that you don’t realize you’ve missed a tax deadline. Many tax agencies don’t mail forms anymore (which was a nice reminder that something was due). And, most federal taxes are now payable through the Electronic Federal Tax Payment Service (EFTPS), and must be initiated several days ahead.
Why this is important?
Missing payroll tax deadlines can quickly land employers in hot water, particularly if they miss a federal payroll tax deposit. Missed or late tax payments can result in hefty late charges, penalties, or legal trouble.
How to avoid this mistake:
- Get organized. The IRS has a tool called Calendar Connector to help you remember federal tax deadlines.
- Register for EFTPS when you start your business at www.eftps.gov.
- Initiate your tax payments through EFTPS well ahead of the due date.
- Indicate the proper tax period when paying taxes. If you select the wrong tax period, the government may apply your payment to the wrong quarter.
- Double-check mailing addresses for other tax payments, and opt for a return receipt so you know your payment has safely arrived.
- Consider using a payroll tax filing service so you don’t have to worry about deadlines.
If you make this mistake:
If you miss a payment, contact the tax agency. The sooner, the better: Late charges can pile up quickly.