Payroll Tax Debt Calculator (Form 941)
Use this payroll tax debt estimator to quickly approximate unpaid Form 941 liabilities, including estimated penalties and interest for late payroll deposits. This tool is intended for employers who are behind on payroll deposits and need a rough estimate of back taxes owed.
Calculator Inputs
Enter the number of employees, number of months payroll deposits were missed, and the average monthly payroll per employee. The estimator assumes a combined payroll tax rate of 15.3% (Social Security and Medicare) and applies simplified penalty and interest models.
About Payroll Tax Debt and Form 941
Payroll tax debt can include unpaid employee withholdings and employer payroll taxes reported on Form 941. Late deposits may trigger deposit penalties and accumulating interest. This estimator provides a conservative approximation to help employers plan next steps and estimate potential liabilities before contacting a tax professional.
How to resolve payroll tax problems
- Contact a qualified payroll tax professional or tax attorney.
- File delinquent Form 941 returns and submit payments promptly.
- Consider IRS programs for payment plans or penalty relief if eligible.
Common questions
- What is Form 941 payroll tax?
- Form 941 is the IRS return used to report income taxes, Social Security tax, and Medicare tax withheld from employees, and the employer’s portion of Social Security and Medicare taxes.
- How are penalties calculated?
- Penalties for late payroll deposits depend on how late deposits are and the total unpaid amount. This calculator uses a simplified capped monthly penalty model for estimation only.
- Can this estimate be used for official filings?
- No. This tool provides an estimate of potential back taxes, penalties, and interest. Consult a tax professional or the IRS for exact amounts and filing requirements.