Employers who file 941 late will likely encounter the Failure to Deposit Penalty. The IRS’ penalty applies to employers who fail to make employment tax deposits:
- On time
- In the correct amount
- In the right way
The penalty that you owe to the IRS is a percentage of the taxes in any of the aforementioned scenarios. One of the best ways to eliminate penalties for filing taxes late is by using the most comprehensive software that meets your requirements. However, if you do still encounter any penalties, the IRS will send your business a notice or letter explaining your penalty once they determine that you missed a filing deadline.
The IRS calculates your penalty based on how many calendar days your Form 941 is late. Make sure to resolve any missing forms as soon as you realize the problem.
- 1-5 calendar days – 2% of the unpaid deposit
- 6-15 calendar days – 5% of the unpaid deposit
- More than 15 calendar days – 10% of the unpaid deposit
- Over 10 calendar days after your first notice date or the date that you received a letter for immediate payment – 15% of the unpaid deposit
Consider our Forms Filer Plus software to accurately and efficiently prepare your payroll-related forms. Download our free demo software to reduce the risk of owing the IRS any penalties.