Diary of a Bad, Bad Bookkeeper (Day 195) – The IRS

Dear Diary,

Today I got a notice from the IRS.  Luckily, the receptionist passed the letter to me unopened before the boss saw it (she didn’t know what it was), and he doesn’t know it’s here.

Opening the letter, I was shocked.  The IRS said that the company owned payroll taxes on the paychecks for the last three months that I’ve been here, and since we hadn’t paid when we were supposed to, we now owe penalties and interest.  Apparently, payroll taxes are due within three business days of cutting payroll checks, and the IRS considers

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10 Responses to Diary of a Bad, Bad Bookkeeper (Day 195) – The IRS

  1. Great info Erica. Employers should never use their employees money to float their own expenses! However, there are actually two pay schedules-Monthly and Semi-Weekly. Monthly schedule depositors have until the 15th day of the following month to make the deposit. Semi-weekly schedule depositors paying on Sat, Sun, Mon, or Tues must deposit by the following Friday and by the following Wed if paying on Wed, Thur, or Friday.
    They love to make it complicated! If you’re an employer and in doubt of when to pay…use the 3-day “rule” to be safe.

    • E.T. Barton says:

      Hey Reesa, Thanks for sharing. I guess I’m always getting caught up in the easier “safer” rules – like just pay it in 3 days. Without my problems of procrastination (a really bad problem to have for a bookkeeper), I find it’s better just to set those deadlines early and focus only on those. So again – thank you for sharing. It’s always nice to have other bookkeepers chime in.

  2. I have to say, Erica, don’t stop the Bad Bookkeeper series. Love it! Keep them coming…

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