How can I avoid business payroll tax penalties?

[Isabella]

What are the mandatory payroll tax duties for small business owners? How do they properly compute and report employee payroll taxes, and what are the possible penalties for failing to comply with tax laws?

[Kaile]

Small businesses are mandated to withhold federal income, Social Security, and Medicare taxes from employee pay. Use IRS Publication 15 for guidance.

File Form 941 every 3 months and Form 940 once a year. Failure to comply can lead to fines and interest charges, such as those incurred for late Form 941 filings.