When are employers required to report payroll taxes to the IRS?

Employers are required to report payroll taxes to the IRS on a quarterly and annual basis. The quarterly reporting typically involves submitting Form 941, which reports income taxes, Social Security, and Medicare taxes withheld from employees' paychecks along with the employer's portion of Social Security and Medicare taxes. This reporting occurs at the end of each quarter, which aligns with the IRS guidelines for submitting payroll tax data.

In addition to quarterly reports, certain payroll tax information must also be filed annually using Form 940, which reports the Federal Unemployment Tax Act (FUTA) taxes. This dual reporting structure allows employers to keep their contributions and withholdings transparent and up to date throughout the year while also providing a comprehensive overview during the annual filing.

The other options do not align with the established IRS reporting requirements. While biannual reporting is not mandated, monthly or every payroll period options would also be incorrect as they do not reflect the enforced schedules for payroll tax reporting.