When Does Payroll Need to Be Submitted?

Payroll submission involves meeting various deadlines to ensure employees are paid accurately and on time, while also fulfilling tax obligations to government agencies. This process encompasses both internal procedures for employee payments and external reporting and remittance requirements. Understanding these different facets of payroll submission is essential for businesses to maintain compliance and operational efficiency.

Understanding Internal Payroll Deadlines

The timing for internal payroll submission is directly influenced by a business’s chosen pay frequency. Common pay cycles include weekly, bi-weekly, semi-monthly, and monthly, each dictating a specific rhythm for payroll processing. For example, a bi-weekly schedule means payroll must be prepared and submitted every two weeks, aligning with the end of each pay period.

The pay period end date is a fundamental determinant for payroll submission. Once a pay period concludes, the data for employee hours worked, commissions earned, and any other compensation elements for that period become final. This finalized data then needs to be collected and submitted to the payroll system or provider within a specific lead time to facilitate timely payment.

Payroll processing typically requires a lead time for direct deposits to clear, often ranging from two to three business days. This means the internal payroll submission must occur several days before the actual payday to allow sufficient time for banks to process the transactions and for funds to be available in employee accounts. For instance, if employees are paid via direct deposit on a Friday, the payroll submission might need to be completed by Tuesday or Wednesday of that week.

Bank holidays can significantly shift these deadlines earlier. Since banks do not process transactions on federal holidays, payroll submission cut-off times are often adjusted to ensure employees receive their paychecks on the scheduled date. If a payday falls on a bank holiday, or within the direct deposit processing window of a bank holiday, businesses generally need to submit payroll at least one business day earlier to prevent payment delays. Failing to meet internal submission deadlines can result in late payments to employees, which can lead to dissatisfaction and administrative burdens for the business.

Key Tax and Reporting Submission Dates

Beyond internal payment schedules, businesses must adhere to specific external deadlines for remitting payroll taxes and submitting reports to federal and state government agencies. These obligations are distinct from employee payment dates and carry penalties for non-compliance.

Federal tax deposits, including federal income tax withheld, Social Security, and Medicare taxes, are reported on Form 941. The deposit schedule for these taxes is determined by the employer’s total tax liability during a “lookback period.” Businesses with $50,000 or less in tax liability during the lookback period are typically monthly depositors, remitting taxes by the 15th day of the following month. Employers with more than $50,000 in tax liability are usually semi-weekly depositors, with specific rules for when payments are due based on the day wages are paid. If an employer accumulates $100,000 or more in taxes on any day, the deposit must be made by the next business day.

Federal Unemployment Tax Act (FUTA) taxes, reported on Form 940, are also paid by employers. While Form 940 is filed annually by January 31st for the previous calendar year, FUTA tax deposits are generally due quarterly if the accumulated liability exceeds $500. These quarterly deposit deadlines are April 30, July 31, October 31, and January 31.

Quarterly reporting to the IRS for federal income, Social Security, and Medicare taxes is done via Form 941, with deadlines typically set for April 30 (Q1), July 31 (Q2), October 31 (Q3), and January 31 (Q4 of the prior year). State income tax withholding and state unemployment insurance (SUI) also have deposit and reporting deadlines, which vary by jurisdiction, often requiring monthly or quarterly submissions depending on the amount of tax owed.

Annual reporting includes furnishing Form W-2, Wage and Tax Statement, to employees by January 31. Employers must also file Copy A of Form W-2 with the Social Security Administration by January 31. Meeting these external deadlines is a legal obligation to avoid penalties, which can include fines for late filing or late payment.

Information Needed for Payroll Submission

Accurate and complete information is fundamental for successful payroll processing. This includes detailed records of employee hours worked, typically gathered from timesheets or clock-in/out systems for hourly employees. For salaried employees, their fixed schedules and any exceptions, like leave, are recorded.

Information for new hires is essential, including their completed Form W-4 for federal tax withholding, Form I-9 for employment eligibility verification, and direct deposit details. Similarly, for terminated employees, accurate final pay calculations, including accrued vacation or severance, are required.

Any changes to employee data, such as address updates, pay rate adjustments, or department transfers, must be promptly communicated and input into the payroll system. These changes directly affect calculations and ensure correct payments and record-keeping.

Details concerning pre-tax and post-tax deductions are also necessary. Pre-tax deductions might include contributions to 401(k) plans or health insurance premiums, which reduce an employee’s taxable income. Post-tax deductions could involve wage garnishments, loan repayments, or charitable contributions. Information about employer-sponsored benefits that impact payroll, such as health savings account contributions or flexible spending accounts, also needs to be accurately tracked. Ensuring the accuracy and completeness of all this information before submission is important to prevent errors and ensure compliance.

Steps for Submitting Payroll

After gathering and verifying all necessary information, the actual process of submitting payroll involves a series of procedural steps. This begins with data entry or uploading the compiled information into a payroll system or software. This might involve manually inputting hours and deductions, or uploading electronic timesheets and other data files.

Following data input, a thorough review and approval process is crucial. This step involves scrutinizing the payroll summary to confirm the accuracy of total wages, deductions, and tax withholdings for each employee. Discrepancies are identified and corrected before proceeding to the final stage.

The final submission involves transmitting the approved payroll data to the payroll provider or the internal processing unit. This action initiates the payment process, leading to the distribution of funds to employees. Once submitted, post-submission actions occur, such as the processing of direct deposits, the printing of paychecks, or the automatic remittance of payroll taxes by the payroll provider to the relevant tax authorities.