Penalties for Paying Payroll Tax Deposits Late
The IRS imposes steep penalties for making required payroll tax deposits late. The amount of such penalties start at 2% of the unpaid taxes if paid from 1 to 5 days late to 15% if not paid within 10 days of being contacted by the IRS for these taxes. Late deposit penalties are 5% if paid between 6 and 15 days late and 10% if paid more than 16 days late (and prior to ten days after receiving notice from the IRS). Late deposit penalties are determined using calendar days starting from the due date of the liability.