Important 2020 Federal Tax Deadlines for Small Businesses

It’s important for businesses to make all payroll and income taxes in a timely fashion. Failure to do so could result in interest and penalties, an expense no organization can afford. We’re familiar with the April 15 deadline for income taxes, but there are other taxes due on a regular basis as well.

Some businesses choose quarterly tax payments, others more or less frequent installments, but when it comes to deadlines, there’s little wiggle room with the IRS.

A note about payment: The Electronic Federal Tax Payment System (EFTPS) allows businesses to make their payments for a variety of taxes due. The online system moves funds out of a designated bank account when the employer approves the payment. Businesses can sign up for EFTPS for free. To ensure your payment is processed on time on the system, you must schedule funding by 8pm the day before the payment is due. 

Below, you’ll find a list of due dates depending on your type of business.

On March 16, 2020

• Partnership returns: File IRS Form 1065 and Schedule K-1, which is due from each partner
• Multi-member LLC returns: File IRS Form 1065 and Schedule K-1, which is due from each member
• S-corporation returns: File IRS Form 1120S and Schedule K-1, which is due from each shareholder

On April 15, 2020

• Sole proprietorship returns: File Form 1040, Schedule C, and Schedule SE
• LLCs taxed as a disregarded entity: File Schedule C and your personal tax return
• C-corporation returns: File Form 1120 and Schedule K-1, which is due from each shareholder

Filing Extensions

Businesses can file for an extension, with requests made to the IRS online.

• Sole proprietors and single-member LLCs use Form 4868 to request an extension
• Other companies use Form 7004 to request an extension

Remember, requesting an extension is no guarantee of approval. Extension requests do not mean you don’t have to pay your taxes, either. Taxpayers are expected to remit all or part of their estimated taxes at the time of the extension request.

Users of the EFTPS can request an extension online.

If your request for an extension is approved, final, complete returns must be submitted by:

• September 15
  • S-corporations
  • Partnerships
• October 15
  • Sole proprietorships
  • LLCs taxed as a disregarded entity
  • C-corporations

Quarterly business tax payment deadlines

S- and C-corporations who anticipate they’ll owe more than $500 in taxes, and sole proprietorships that anticipate owing more than $1,000, need to make quarterly estimated tax payments in addition to filing their annual return.

You can make a payment up until 8pm on the due date if you use IRS Direct Pay. If you’re using a debit or credit card, the payment deadline is midnight.

Quarterly tax deadlines

• Quarter 1: for the period beginning January 1 through March 31
  • April 15
• Quarter 2: for the period beginning April 1 through May 31
  • June 15
• Quarter 3: for the period beginning June 1 through August 31
  • September 15
• Quarter 4: for the period beginning September 1 through December 31
  • January 15 of the following year

FICA and payroll taxes

Federal Insurance Contributions Act (FICA) and Federal Unemployment Taxes (FUTA) also need to be paid routinely.

FICA contributions are withheld from employee income to fund Medicare and Social Security. FUTA taxes provide funding for employees who lose their job.

FICA taxes are paid through the EFTPS system along with the federal income tax withheld from employee salaries. For small organizations with $50,000 or less in employment taxes, deposits are paid monthly.

For larger companies, deposits are made semi-weekly.

Monthly payroll/FICA tax payments are due by the 15th day of the following month.

Semi-weekly payroll/FICA tax payments are determined by the day of the week employees are paid.

• If employees are paid on a Wednesday, Thursday, or Friday, tax payments are due by Wednesday of the following week
• If employees are paid on Saturday, Sunday, Monday, or Tuesday, tax payments are due by Friday of the following week

In addition to payments, employers must report withholding using Form 941 or through the e-file system.

Deadlines to file Form 941 are quarterly:

• April 30
• July 31
• November 2
• February 1

FUTA taxes

The Federal Unemployment Tax Act (FUTA) deadlines are based on how much tax is owed. The FUTA tax rate is 6% of the first $7,000 paid to each employee as wages during the year. For businesses that have made their FUTA deposits on time, the deadline is February 10.

Due dates for FUTA payments are based on the amount you will owe. If FUTA tax will be more than $500 for the year, payments must be made quarterly. Deposits are made by the last day of the month after the end of the quarter.

In addition to payments, employers must report FUTA taxes due quarterly using Form 940 or through the e-file system.

Deadlines to submit the form are quarterly:

• April 30
• July 31
• November 2
• February 1

If FUTA will be less than $500 for the year, business can make the deposit by January 31 for the previous year. File Form 940 on January 31 to report and pay the annual federal contribution. Deadlines for individual state FUTA taxes may vary. Be sure to check the requirements in your area.