941 Penalty Calculator – 941 Late Payment Penalty
Because the IRS relies on each business to report its 940 payments / 941 payments, it enforces very strict rules and steep fines to make sure that everyone complies by faithfully making their payments and filing their returns on time.
Failure to file your 940 or 941 payment on time will subject you to a late payment penalty.
Penalty calculator: determine the cost of not paying up!
- Your payment is 1 to 5 days late: 2% of the amount due
- Your payment is 6 to 15 days late: 5% of the amount due
- Your payment is 16 or more days late: 10% of the amount due
- If you are notified of your delinquency and you do pay within 10 days: 15% of the amount due
The IRS can, in some instances, impose what is called the Trust Fund Recovery Penalty – 100% of the amount due calculated.
Here are the Trust Fund Recovery Penalty details directly from the IRS.
And, contrary to what some folks will tell you, once you have been assessed a late filing penalty, it is very difficult to get the IRS to waive the payroll tax penalties and interest.
If you fail to heed the warnings, you may end up wishing you were messing with “Jim,” rather than the IRS, with your payroll taxes.
Choosing the right financial partner can help you steer clear of these costly fines.
So, consult with your accountant or work with a payroll company to make sure your payroll taxes are paid on time and your returns are filed promptly each quarter in order to avoid 941 / 940 penalties. If cash flow management is a problem, get information that can help smooth out the bumps in your cash flow.
MP Star Financial’s invoice factoring services can make your cash flow more predictable and let you focus on running your business. Call MP Star Financial for more information at 800-833-3765 Ext. 150 or use our online factoring application.