Reporting and Paying Employment Taxes There are special rules for reporting and paying employment taxes. Penalties.If you pay your taxes late, you may have to pay a penalty as wellas interest on any overdue amounts. There are also civil and criminal penalties for intentionally notpaying taxes, filing a false tax return, or filing no return at all. Trust fund recovery penalty.If you are responsible for withholding, accounting for, depositing,or paying withholding taxes and willfully fail to do so,you can be held liable for a penalty equal to the tax not paid, plusinterest. A responsible person can be an officer of a corporation, apartner, a sole proprietor, or an employee of any form of business. Atrustee or agent with authority over the funds of the business canalso be held responsible for the penalty. "Willfully" in this case means voluntarily, consciously, andintentionally. Paying other expenses of the business instead of thetaxes due is considered to be acting willfully. Social Security, Medicare, and Withheld Income Taxes You must withhold income, social security, and Medicare taxesrequired to be withheld from the salaries and wages of your employees.You are liable for the payment of these taxes to the federalgovernment whether or not you collect them from your employees. If,for example, you withhold less than the correct tax from an employee'swages, you are still liable for the full amount. You must also payyour share of social security and Medicare taxes. Form 943.Report withheld income tax and social security and Medicare taxeson Form 943. The 1999 form is due by January 31, 2000 (or February 10if the tax was timely deposited in full). Deposits.Athens hotelsYou will generally have to make tax deposits if you are liable for$1,000 or more of social security and Medicare taxes and withheldincome tax during the year. You must deposit both your part and youremployees' part of social security and Medicare taxes and withheldincome tax before you file Form 943. Electronic deposit requirement.You may have to deposit all employment taxes using the ElectronicFederal Tax Payment System (EFTPS). You can make depositselectronically with EFTPS using your telephone. You must use EFTPS to make deposits of all depository taxliabilities (including social security, Medicare, withheld income,excise, and corporate income taxes) you incur after 1999 if youdeposited more than $200,000 in federal depository taxes in 1998. Ifyou first meet the $200,000 threshold in 1999 or a later year, youmust begin depositing using EFTPS in the second succeeding year. Onceyou must deposit electronically because you meet the $200,000threshold, you must continue to make deposits using EFTPS. Electronic deposits are voluntary if you do not meet the $200,000threshold, even if you had to deposit electronically before 2000because you met a previous threshold. To enroll in EFTPS, call1-800-945-8400 or 1-800-555-4477. For general information about EFTPS, call1-800-829-1040. If you must use EFTPS but fail to do so, you may be subject to a10% penalty. This penalty has been waived for deposit obligationsincurred before January 1, 2000, except for taxpayers who depositedmore than $200,000 in 1998. More information.For more information on deposit rules and penalties for latedeposits, see Circular A. Form W-2.By January 31, you must furnish each employee a Form W-2showing total wages for the previous year and total income tax andsocial security and Medicare taxes withheld. However, if an employeestops working for you and requests the form earlier, you must give itto the employee within 30 days of the later of thefollowing dates. The date the employee requests the form. The date you make your final payment of wages to theemployee. See Form W-2 under Other Forms inchapter 2. FUTA Tax Newcastle luxury hotelsThe federal unemployment (FUTA) tax is imposed on you as theemployer. It must not be collected or deducted from the wages of youremployees. Form 940.FUTA tax is reported on Form 940, ERROR MSGEmployer's Annual FederalUnemployment (FUTA) Tax Return. This form covers one calendaryear and is generally due January 31 after the year ends. However, youmay have to make deposits of FUTA tax before filing the return. If youdeposit the tax on time and in full, you have an extra 10 days to file-- until February 10. Form 940-EZ.You can use Form 940-EZ, a simplified version of Form 940, ifyou meet all the following tests. You paid state unemployment tax (contributions) to only onestate. You paid the state tax by the due date of Form 940 or940-EZ. All wages taxable for FUTA tax were also taxable for stateunemployment tax. Deposits.If at the end of any calendar quarter you owe, but have not yetdeposited, more than $100 in FUTA tax for the year, you must make adeposit by the end of the next month. See Social Security,Medicare, and Withheld Income Taxes, earlier, for a discussionof the requirement for making deposits electronically. luxuriose Boutique-Hotels SarvarIf the undeposited tax is $100 or less at the end of a quarter, youdo not have to deposit it. You must add it to the tax for the nextquarter. If the total undeposited tax is more than $100 at the end ofthe next quarter, a deposit will be required. If the total undepositedtax at the end of the 4th quarter is less than $100, you can eithermake a deposit or pay it with your return by the January 31 due date. See Circular A for more information on depositing FUTA tax.