Small Business Owners: Did you know?
According to the IRS, 40% of small businesses pay an average penalty of $845 per year for late or incorrect payroll filings and payments." - Craig Hurlbut, Director of Payroll and U.S. payroll tax expert for Wave
Top 3 tax penalties for not making timely federal tax deposits:
- Failure-to-Deposit penalty percentage rates range from 2% for up to five days late, to 15% for more than ten days after your first IRS bill.
- Failure-to-File penalty is 4.5% per month of unpaid tax, up to 22.5% of your unpaid taxes.
- Failure-to-Pay penalty is 0.5% per month of unpaid tax, then 1% per month after your Notice of Intent to Levy, up to 25% of your unpaid taxes.
The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.