Reporting and Paying Corporate Taxes

Form 1120

  • This is a C corporation's income tax return.
  • It is filed annually.
  • The filing deadline is the 15th day of the third month after the end of the corporation's tax year.

If December is the last month of the tax year, the return is due March 15 of the following year.

Form 7004

  • Used to get an extension
  • Filing an extension doesn't extend the time for paying the tax
  • Nonpayment will result in a nonpayment penalty as well as interest
  • Penalties and interest start from the original due date of the return.

Form 941, Employer's Quarterly Federal Tax Return

  • Filed quarterly
  • Used to report federal income tax withheld, social security and Medicare tax withheld, and tax deposits made each quarter

Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return

  • Filed annually
  • Used to report FUTA tax paid during the year (if required), and any balance due at year-end.
    • This tax is paid by the employer, not the employee.

Form 8109

Use this form to make tax deposits only if you do not deposit taxes electronically.

W-2 Form

Issued after year-end to all employees, including S corporation employee/shareholder(s).

W-3 Form, Transmittal of Wages and Tax Statements

  • Used to summarize income and withholdings reported on each W-2.
  • Use only one Form W-3 regardless of how many W-2 forms are issued.
  • Attach Copy A of each W-2 to the transmittal form and submit them to the Social Security Administration.
  • Generally, they are due by February 28th of the following tax year. If you file electronically (not by magnetic media), the due date is March 31st.

State Income Taxes Withheld

Generally, states require quarterly state withholding reports to be filed reporting state income taxes withheld from employee's wages. This is not required in states that don't have an income tax imposed on individuals (e.g., Nevada). Check with your state.

State Unemployment Taxes (SUTA)

Generally, state unemployment taxes are paid quarterly, by remitting them with the quarterly state unemployment tax return.

SUTA is an employer tax. Most states do not withhold SUTA tax from an employee's wages. However, currently, Alaska, New Jersey, and Pennsylvania withhold unemployment taxes from employees' wages.

Check your state's requirements.

Annual State Income Tax Reconciliation

Your state may require an annual reconciliation of state income taxes withheld.  The amount of income taxes actually paid for the year are reconciled with the amounts that were withheld. The state normally provides a form for this. Check with your state.

Trust Fund Taxes

Trust fund taxes include income taxes and the employee's share of FICA taxes (social security and Medicare taxes) withheld from salaries and wages.

Make sure you turn theses taxes over the government! If you don't, you can be held personally liable for them. In other words, you have no limited liability protection when it comes to these taxes; not even bankruptcy will get you out of paying them.

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