Payroll question

[JG EA]

Something I've never been able to nail down.

Monthly depositor

1st month of quarter and second month together both under $2500.

3rd month puts over $2500.

Is a fine imposed if the 3 months together are deposited by the 15th of the next month after the quarter?

I've noted that there is no penalty if the whole quarter in under $2500, but am unsure about this point.

[DaveO]

I have seen penalty notices

With this set of facts in the last year. Don't recall seeing too many before. Basically if you never paid over $2500 on the 941 you wouldn't get a penalty. Don't know if this is an enforcement change.

[Davc]

Yes.............

[JohnH]

Penalty will apply

If the info on Line 15 is entered, they will calculate the penalty based on actual monthly liability. If not filled in, they will average the liability and assess the penalty in this manner. The penalty based on averaging is usually higher.

[JG EA]

Thank you. I tried to forestall this by having the client pay all three months by 12/31. But it doesn't sound like that will help.

Thanks.