# US Payroll & Payroll Tax Filings

> A US company with employees withholds federal income tax and FICA from wages, deposits payroll taxes on a monthly or semi-weekly schedule, files Form 941 every quarter (by 30 April, 31 July, 31 October and 31 January) and Form 940 for federal unemployment tax by 31 January, and issues W-2s to employees and the SSA by 31 January. Each state where employees work adds its own withholding and unemployment registrations.

Practice: US Accounting, Payroll & Sales Tax — https://www.industax.com/services/us-accounting-compliance/

Payroll penalties are among the IRS's steepest, and responsible persons can be personally liable for unpaid withheld taxes. We run payroll through a US payroll platform and handle registrations, deposits and filings.

For founders paying themselves, we advise on reasonable compensation (for S corps) and on contractor versus employee classification.

## Key facts

| Item | Detail |
| --- | --- |
| Form 941 | Quarterly |
| Form 940 | Annual, 31 January |
| W-2 / W-3 | 31 January |
| Deposits | Monthly or semi-weekly schedule |
| States | Withholding and unemployment accounts where staff work |

## Who needs this

- US companies hiring their first employees
- Foreign-owned companies with US staff
- Companies with staff in several states

## What's included

- Payroll processing
- Tax deposits and filings
- W-2s
- State registrations

## Documents

- Employee W-4 and I-9
- Pay rates and schedules
- State registration details

## Process

1. **Register** — Federal and state payroll accounts.
2. **Run** — Payroll each cycle with deposits.
3. **File** — 941, 940 and W-2s on time.

## FAQs

### Do I need payroll if only the owner works in the company?

For an LLC taxed as a disregarded entity, the owner isn't on payroll. For a C corp or S corp, owner-employees performing services are paid wages through payroll.

### Can US employees be paid from India?

Payroll can be processed from India using US payroll software, but wages must be paid and taxes deposited through US channels.

### What about contractors?

Independent contractors aren't on payroll; US contractors paid $2,000 or more in 2026 receive Form 1099-NEC.

## Official sources

- IRS — Internal Revenue Service: https://www.irs.gov/

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Canonical page: https://www.industax.com/services/us-accounting-compliance/us-payroll-941-940
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.