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sam i am 101
November 4, 2022
Question

Payroll Taxes are over the limit

  • November 4, 2022
  • 1 reply
  • 0 views

Hello Everyone, 

 

Hope things will be fine at your end. I have a problem with payroll and want to see what are the solutions for this problem. 

 
Our employee count has been increasing and does the payroll and payroll taxes. Last payroll I was not able to run the entire payroll and I had to postpone some of the payroll. The problem is that whenever I was trying to submit the payroll, I received a message that "taxes due exceed the legal limit. Any time taxes exceed the legal limit, the tax must be paid by the end of the next banking day after the payday, regardless of your regular tax deposit schedule". The total federal tax was over the 100K and it did not process but when I held some payroll and reduced the Federal taxes to less than 100K, it went fine. 
 
What should I do in this case, I can hold the payroll of some employees again and again. 
 
All help will be highly appreciated.  
 
Thanks, 

1 reply

LieraMarie_A
LieraMarie_A
November 4, 2022

Hi there, @sam i am 101.

 

We appreciate your time being here and looking for help concerning federal tax liability exceeding $100,000.

 

The message appears when you accumulate $100,000 or more in taxes on any day during a monthly or semiweekly deposit period. In this case, the $100,000 Next-Day Deposit Rule applies. This means you must pay the tax by the next business day. The IRS penalty for a late next-day tax deposit is automatically 10% of the 941 taxes due.

 

I recommend seeking professional advice from a tax advisor or the IRS. They can guide you on how to handle this matter. You may also refer to this article for more info: Pay your federal tax liability when it's over $100,000.

 

Feel free to come back any time you need help with paying and filing. your payroll taxes. I'd be happy to lend a hand. Take care, @sam i am 101.

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