IRS Simplifies Payroll Reporting Rules

WASHINGTON - The Internal Revenue issued new proposed regulations today simplifying payroll reporting and deposit rules for six million employers. The regulations require employers to report and make deposits of payroll items separately from deposits of non-payroll items starting January 1, 1994.

Non-payroll items include backup withholding and withholding for pensions, annuities, IRAs and gambling winnings. Employers will receive revised Forms 8109, Federal Tax Deposit Coupons, to use for the separate deposit system. The revised coupons will have a box to check for non-payroll items.

When finalized, these new rules will revise the reporting of payroll items for six million employers beginning in the first quarter of 1994. IRS intends to issue a simplified Form 941, Employer's Quarterly Federal Tax Return, for 1994 payroll taxes.

Under the proposed regulations, about 300,000 employers will no longer have to report non-payroll items quarterly. Non-payroll items will be reported annually on new Form 945, Annual Return of Withheld Federal Income Tax. Since non-payroll items will no longer be able to move from semi-weekly deposit schedules to monthly deposit schedules in future years.

Previous | Next

1993 IRS News Releases | News Releases Main | Home