The IRS reports that about one-third of employment tax returns were e-filed in 2014.
For the record, that’s roughly 10 million of 30 million returns.
Although electronic filing isn’t required, the IRS is considering how to increase those numbers.
Bottom line: That means companies like yours may soon be facing pressure to e-file.
Is your staff up on the basics of e-filing?
Test yours and staffers’ knowledge of electronic filing by answering True or False to the following statements:
1. Whether you file your federal tax returns quarterly or annually, you can do so electronically.
2. Accompanying schedules can also be filed electronically.
3. The IRS offers one option for the e-filing of employment tax returns.
4. If you have a balance due with your return, you can submit your payment when you e-file.
ANSWERS TO THE QUIZ
1. True. Both Form 941 and Form 944 can be filed electronically, as can Form 940, Employer’s Annual Federal Employment (FUTA) Tax Return.
2. True. Schedules can be e-filed too.
3. False. You have three options. Option 1: Sign and file your own returns which involves becoming an Authorized Signer. Option 2: Authorize a Reporting Agent to prepare, sign and file the returns. Option 3: Become an Authorized e-file Provider.
4. True. At the time that you e-file, you can authorize an electronic funds withdrawal from your bank account or pay by credit card.
For more info, visit the IRS’s website by clicking here.
