| The tax year is divided into four quarters January, | | | | 941, 944 and 940 Forms. |
| February and March make up the first quarter. The | | | | On February 16th W-4 forms claiming exemption |
| second quarter of the year consists of April, May and | | | | from withholding expires. Previous to this date |
| June. Third quarter includes July, August and | | | | request new Form W-4, Employee's Withholding |
| September leaving October, November and | | | | Allowance Certificate, from all employees who |
| December as the fourth quarter. | | | | claimed exemption from income tax withholding in the |
| Employers must adhere to a strict timeline for filing | | | | previous year. If the employee does not give their |
| forms and tax payments to the IRS. Penalties maybe | | | | employer a new W4 form the employer must start |
| incurred if deadlines are not meet. The 2010 payroll | | | | withholding at a single rate zero allowances. The end |
| calendar published by the IRS can be an important | | | | of February, by February 28th, file Copy A of all |
| tool for employers. | | | | paper 1099 forms with Form 1096 with IRS and file |
| January is the first month of the year employers will | | | | all paper W2 Copy A forms with Form W3 to SSA. |
| be wrapping up the end of the previous year. | | | | These forms can be electronically filed with the |
| Employers and payers are required to provide | | | | respective agencies moving the deadline to March |
| employees and contractors with Form W2 and Form | | | | 31st. Employers submitting more than 250 forms may |
| 1099 Misc. These forms must be issued no later than | | | | be required to electronically file. |
| January 31st. Employers must file their tax return, for | | | | Form 941 is due the month following the end of the |
| the previous year, no later than January 31st that | | | | quarter. April 30th, July 31st October 31st and |
| maybe Form 941, Employer's Quarterly Federal Tax | | | | January 31st of the following year are the due dates |
| Return or Form 944 Employer's Annual Federal Tax | | | | for Form 941. Before December 1st supply |
| Return. Employer's Annual Federal Unemployment Tax | | | | employees with a new Form W-4. If they have any |
| Return (FUTA) is another form due by January 31st. | | | | changes for the coming year have them make the |
| If employers have deposited all tax payments when | | | | appropriate changes on the new form. Eligible |
| due they have an additional 10 days to file Forms | | | | employees who want to receive advance payments |
| 940, 944 and 941. | | | | for the next year must submit a new W-5 to their |
| These types of payroll tax forms can be complicated | | | | employer. On December 31st Form W-5, Earned |
| and time consuming to complete. The forms may | | | | Income Credit Advanced Payment Certificate, |
| take many manual calculations which can cause costly | | | | expires. |
| errors. Payroll software is a smart alternative to | | | | Payroll program automatically calculates net pay, |
| manually figuring payroll or using an expensive payroll | | | | federal withholding tax, Social Security tax, Medicare, |
| service. Payroll software automatically prepares W2, | | | | state and local payroll taxes. |