Payroll Tax Compliance Checklist

Payroll taxes are one of the most complex parts of running a small business. Missing a deadline or underpaying can lead to penalties. This Payroll Tax Compliance Checklist breaks down everything you need to track — from quarterly filings to year-end reports.

Download Our Free Brochure →

Step 1 – Federal Payroll Taxes

1. Withhold federal income tax from employee paychecks.
2. Withhold Social Security and Medicare (FICA) contributions.
3. Deposit federal payroll taxes via EFTPS.
4. File Form 941 (quarterly) or Form 944 (annual, if qualified).

Step 2 – State & Local Payroll Taxes

1. Register for state withholding accounts.
2. Deposit state income taxes (frequency varies by state).
3. Pay State Unemployment Insurance (SUI/SUTA).
4. Check for city/county payroll taxes.

Step 3 – Federal Unemployment Tax (FUTA)

1. Calculate 0.6% FUTA on the first $7,000 of each employee’s wages.
2. Deposit FUTA taxes (quarterly if liability > $500).
3. File Form 940 annually.

Step 4 – Quarterly & Annual Filings

• Quarterly: Form 941 (federal), state equivalents.
• Annual: Form 940 (FUTA), W-2/W-3 (employees), 1099-NEC (contractors).
• Double-check due dates (IRS, state agencies).

Step 5 – Payroll Tax Recordkeeping

• Keep tax payment confirmations.
• Retain filed returns (941, 940, W-2, 1099).
• Store payroll registers and reports for at least 4 years.

Download the Payroll Tax Compliance Checklist PDF

Get the printable version here: Download Payroll Tax Compliance Checklist PDF

FAQs

How often do I deposit payroll taxes?
Most small businesses deposit either monthly or semi-weekly, depending on IRS guidelines.

What happens if I miss a deposit deadline?
The IRS may assess penalties ranging from 2% to 15% of the unpaid amount.

Do I need to file payroll taxes if I only have contractors?
You don’t file payroll taxes for contractors, but you must issue 1099-NEC forms at year-end.

---

Tired of managing payroll taxes yourself?

RemoteBooksOnline offers payroll services integrated with bookkeeping to keep you compliant and stress-free. Get a free quote today.

Related Checklists

If you’re handling payroll for multiple states, you may also need our Payroll Tax Compliance Checklist and Payroll Recordkeeping Checklist

Download Our Free Brochure →