Jun 21st 2013
UPDATE: Beginning August 1, 2013, an additional six states will join Wave's Payroll Tax Service: Alaska, Nevada, South Dakota, Tennessee, Washington, and Wyoming.
Wave, the Cloud-based provider of small business finance tools, announced the addition of Payroll Tax Service in ten US states. Joining Wave's integrated small business solutions, Payroll Tax Service eliminates the tedious tax payment and filing process, keeping customers' payroll taxes up to date.
After customers run their payroll, Payroll Tax Service takes care of the rest by filing payroll taxes to federal and state agencies on the customer's behalf. The service only withdraws funds when taxes are due to maximize customers' control over their cash flow, and it notifies customers prior to withdrawal and payment.
"According to the IRS, 40 percent of small businesses pay an average penalty of $845 per year for late or incorrect filings and payments," says Craig Hurlbut, director of Payroll and US payroll tax expert for Wave.
Did you know?
- There are three basic penalties for not making timely federal tax deposits: failure to deposit, failure to file, and failure to pay.
- In addition to penalties, you must also pay interest.
- Failure-to-deposit penalty percentage rates range from 2 percent for up to five days late, to 15 percent for more than ten days after your first IRS bill.
- The failure-to-file penalty is 4.5 percent per month of unpaid tax, up to 22.5 percent of your unpaid taxes.
- The failure-to-pay penalty is 0.5 percent per month of unpaid tax, then 1 percent per month after your notice of intent to levy, up to 25 percent of your unpaid taxes.
Source: The ABCs of FTDs, IRS
"There are several reasons to outsource payroll, beyond avoiding hefty penalties. It saves time for staff, cuts down on costs, reduces risk associated with in-house payroll processing, and ensures secure payroll operations," adds Hurlbut.
Already available in Florida, Texas, New York, California, Illinois, Pennsylvania, Ohio, Michigan, Georgia, and New Jersey for an additional $20 per month, Wave plans to roll out Payroll Tax Service across the country later this year.
"Simplifying the accounting process for small business owners is a cornerstone of Wave's operations. We know how complicated payroll taxes can be. Payroll Tax Service facilitates payments and filing to the appropriate agencies for our customers, keeping them on time and in compliance," says Wave CEO Kirk Simpson.
Customers can also download Wave's payroll app for iOS from the App Store. For full details on Wave's Payroll Tax Service, please visit www.waveapps.com/payroll.