Here’s How Indian Tribal Governments Can Avoid Employment Tax Penalties

Here’s How Indian Tribal Governments Can Avoid Employment Tax Penalties

Here are some ways your tribe can avoid 
IRS penalties related to Employment Taxes.   This is especially important when you hire new 
employees and file tax returns. There are four   Main things to consider: Identification numbers, 
timeliness, accuracy, and resources for help.  First, be sure to get valid Taxpayer ID 
numbers from all employees and vendors   Before you make the first payment to them. 
You can use Form W-4 for employees and Form   W-9 for vendors. These ID numbers could 
be Social Security numbers, Individual   Taxpayers Identification numbers, also known 
as ITINs, and Employer Identification Numbers.  Second, make tax deposits on time. If 
your tax liability reaches $100,000,   Remember you must deposit the tax so the 
IRS receives it by the next business day.  It’s important to file and 
furnish information returns,   Such as Forms 1099, and Forms W-2 on time.
If you don’t, the penalties can add up   Quickly for information returns filed late.
Remember to respond to notices right away.  Next, remember to verify the information 
before filing Forms 941 and W-2. Check your   Payroll records against totals reported on Forms 
941 and W-3 to make sure they match exactly.  Check Form 941 and Schedule B to 
make sure the total tax liability   Matches exactly between the two forms. The 
same applies to Form 945 and Form 945-A.  Finally, keep Publications 
15, 15-A, 15-B, 15-T, 5343,   And 4268 nearby for guidance. These 
will help you go through the process   Of paying and reporting employment taxes.
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