What are Payroll Delinquency Notices?
Once you are registered as an Employer with the state, state departments like the Department of Labor (DOL) and the Department of Revenue (DOR) require you to file Payroll Reports for each quarter/month based on your filing frequency. Filing frequency is usually determined during the registration process, once you enter your wage details. If you were not already registered as an employer with the state, when you joined Collective, your Employer Registration was most likely handled by Collective. This is another amazing service that Collective offers as a part of your subscription.
Now you might think if you’re not running payroll, you don’t need to file the reports since no employees were performing work and no wages were paid. Well, this might not be true! The state departments still want you to file the reports, so they know that you did not run any payroll or hire any employees. These reports are called Zero Dollar Payroll Reports.
When you fail to file your monthly/quarterly reports by the due date set by the state, you receive a Delinquency Notice. Some states also charge penalties for not filing the reports on time. Others assess penalties and late fees but end up waiving them off once the reports are filed.
To make sure your LLC is in good standing with the state agencies, it’s important to file these reports on time. If you are using Gusto or similar software to run payroll, this is usually taken care of by the Payroll software BUT only after you’ve run your first payroll. If you did not run payroll in the same quarter that you were registered in, you need to file these reports manually.
How do I avoid Payroll Delinquency Notices?
Avoiding Payroll Delinquency Notices is easy. All you have to do is, start running payroll in Gusto and Gusto will start filing the reports for you. Even if you don't plan on running an actual payroll anytime soon, you can run a Zero Dollar Payroll in Gusto to start the report filing process.
If you need help running payroll, please reach out to your Onboarding Accountant or watch the video here.
What do I need to do if I receive a Delinquency Notice?
If you’ve received a Payroll Delinquency notice, please email the notice to [email protected]. Our dedicated Payroll Tax Team will review the notice and assist you in filing necessary reports with the state.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.