Payroll Tax Penalty Amounts

If you don’t file your payroll taxes on time, you WILL receive a notice from the IRS for penalties. IRS payroll penalties are some of the most intense penalties to bear. As of January 2019, the penalties are as follows:
2% for deposits made 1 to 5 days late
5% for deposits made 6 to 15 days late
10% for deposits made 16 or more days late, but before 10 days from the date of the first notice the IRS sent asking for the tax due
15% for amounts still unpaid more than 10 days after the date of the first notice the IRS sent.

Late deposit penalty amounts are determined using calendar days (not business days) starting from the due date of the liability.

If you would like a more comprehensive explanation of payroll tax penalties, please make sure to respond and request a free copy of our e-guide “IRS Penalties That Can Bankrupt Your Business”