Quarterly Payroll Tax (year-end W-2 included)
Quarterly Payroll Tax: File on Time, Avoid Steep Penalties
Businesses with W-2 employees must file payroll tax returns every quarter with the IRS and state agency. Late filing penalties start at 2% and can reach 15%, accruing daily.
4x/year
Quarterly filings
Up to 15%
Late penalty
4
Due dates per year
Who needs to file
- Any small business with W-2 employees
- S-Corp shareholders / owners receiving a reasonable salary
- Seasonal businesses — must file for every quarter with paid employees
What we handle
- Form 941 (federal quarterly employer return)
- CA DE-9 / DE-9C (EDD quarterly filing)
- Form 940 (annual federal unemployment, FUTA)
- Year-end W-2 / W-3 prep (free for full-year package clients)
- DE-34 new hire reporting
- Employer matching SS + Medicare calculations
Due dates
Quarterly filing deadlines: 4/30, 7/31, 10/31, 1/31 · Tax deposits follow semi-weekly or monthly deposit schedules
Year-end W-2 / W-3 prep is free for full-year package clients. Payroll taxes aren't optional — IRS penalties for late deposits are strict. Signing up early protects you from penalty risk.
Frequently Asked Questions
I missed a quarter — what should I do?+
File and pay as soon as possible. IRS penalties start accruing the day the tax was due, so every day of delay adds cost. If you've already received a notice, contact us — we can assess whether you qualify for Penalty Abatement.
I'm the only person in my S-Corp — do I still need to file quarterly payroll?+
Yes. The IRS requires active S-Corp shareholders to receive reasonable W-2 compensation. That salary triggers quarterly payroll tax obligations (Form 941), even if you're the only employee.
How does quarterly payroll relate to the annual business return?+
Quarterly filings (Form 941) are the periodic pay-in of employer taxes throughout the year. Year-end, you reconcile with W-2/W-3s to employees, which then flow into your annual business return (Form 1120-S or Schedule C). They're connected steps in the same compliance chain.