November 01, 1993
IRS Simplifies Payroll Reporting Rules
WASHINGTON - The Internal Revenue issued new proposed
regulations today simplifying payroll reporting and deposit rules
for six million employers. The regulations require employers to
report and make deposits of payroll items separately from deposits
of non-payroll items starting January 1, 1994.
Non-payroll items include backup withholding and withholding
for pensions, annuities, IRAs and gambling winnings. Employers will
receive revised Forms 8109, Federal Tax Deposit Coupons, to use for
the separate deposit system. The revised coupons will have a box to
check for non-payroll items.
When finalized, these new rules will revise the reporting of
payroll items for six million employers beginning in the first
quarter of 1994. IRS intends to issue a simplified Form 941,
Employer's Quarterly Federal Tax Return, for 1994 payroll taxes.
Under the proposed regulations, about 300,000 employers will no
longer have to report non-payroll items quarterly. Non-payroll
items will be reported annually on new Form 945, Annual Return of
Withheld Federal Income Tax. Since non-payroll items will no longer
be able to move from semi-weekly deposit schedules to monthly
deposit schedules in future years.
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