Q. Our business is interested in using a “common paymaster.” Can we report all the payroll tax deposits on one form? J.L.M., Denver
A. Yes. The corporation that serves as the common paymaster reports the entire payroll tax information on a single Form 941, Employer’s Quarterly Federal Tax Return. Similarly, it reports the full amount of each employee’s wages on a single W-2 for 2009. If an employer has previously has been reporting wages separately, it must notify the IRS that it is using a common paymaster and identify the responsible entity.
Tip: Although each quarter stands on its own, it may be easiest to switch over to the common paymaster setup for the first quarter of a new year.
- Make the independent contractor vs. employee decision before you bring person on board
- Save tax dollars by putting your 'trust' in a college savings device
- More bang for your buck -- Cutting costs with contractors
- 8 tips for handling summer military-leave payroll issues
- Tax Relief Act opens 'tax window' for charitable rollovers