USA Payroll Taxes

[Leonardo Tapia]

I'm currently working on a project for my college bookkeeping course and need some help. In the project, I have to deposit the federal payroll withholding taxes of the previous month. However, the most recent payroll period ended on the 2nd of the current month. The journal entries I made for that payroll period includes the wages incurred on the 1st and 2nd of the current month, so should I separate the wages incurred during this month from the wages incurred in the previous month and calculate the taxes separately? Or should I just deposit the taxes I calculated for the payroll with the wages of the current month included?

 

[Tyson]

I'm not an expert, but It is my understanding that the payroll period only needs to be included in a tax period if the pay period ends within the tax period. Thus the federal withholding taxes for the pay period that ended on the 2nd of the current month should be included in the current month's federal withholding taxes and not the previous month.

That being said, because deposits are not due until the 15th of the month, in practice I would just go ahead and include that week's withholding taxes in the deposit.

Ask your professor and see what he says. Then report back and let me know. I am curious

 

[Leonardo Tapia]

I asked my professor and you were right the first time. Since the payroll ended during the current tax period, the taxes should be deposited on the 15th of the next month. Only the taxes incurred during the previous month should be deposited on the 15th of the current month.

 

[Tyson]

Thank you