If you're new to being an employer, one of the best ways to avoid trouble with the IRS, state labor boards, and other entities is to understand the paperwork that you now have to provide. Here are four of the most important federal payroll forms you will need to remit. 

Forms W-2 are statements of what each employer paid to each employee during a calendar year. You're allowed to use a variety of form styles as long as they adhere to the requirements of the IRS regarding box identification and required wording.

Companies generally start compiling the information for Forms W-2 in early January so they have enough time to ensure that the data is accurate and complete. The company then provides a copy of this form to each employee and to the Social Security Administration. The standard deadline for both is January 31. You generally also must send a copy to your state tax agency, but directions are state-specific.

Form W-3 is the summary page included when remitting to the SSA its copies of Forms W-2. It is designed to help ensure accuracy of the overall forms and provide gross information for reporting purposes.

This summary form includes the total dollar amounts of each box on all forms included. For instance, if the attached Forms W-2 are for three employees who are each paid $1,000 in gross income, the summary page would report $3,000 in the gross income box.

This form is one of two primary returns that an employer must provide to the IRS to declare its payroll tax obligation and submit any remaining amount due. Payroll (or employment) taxes are comprised of four basic categories: income tax withholding, Medicare and Social Security contributions, unemployment insurance, and state-mandated taxes (such as disability coverage).

Form 940 reports FUTA (Federal Unemployment Tax) payments made by the company over the year. It's an annual form. The amount due may be offset if you also must pay unemployment taxes to your state, reported as a credit on Form 940.

On Form 941, the employer reports both the amount withheld from employee paychecks for their income tax and the amount remitted by the employer for Social Security and Medicare contributions (collectively known as FICA) during each quarter.

The easiest part is to add up what was withheld from employees' pay and match it to the amount remitted to the IRS and the state. These numbers should match. The trickier part is to balance the amount remitted for FICA contributions, which are paid in part by employees and in part by the employer.

On Form 941, you perform the calculations to determine the correct percentage to be paid and then compare it with what was actually withheld and remitted for both halves of the tax. If your numbers do not balance, the company is expected to remit the correct amount anyway. You may owe employees a refund if anything was over-withheld.

If you have a well-managed and accurate payroll system, Form 941 is relatively simple to complete. However, if your numbers don't balance, the company must find the problem and correct it for the future. This can be much more difficult.

Each of these federally-required forms must be completed on time and accurately. This job can be challenging for any employer, big or small. The responsibility for errors falls squarely on the employer, so you risk fines, penalties, and a hefty tax bill. The best way to comply with all your obligations is to work with an experienced bookkeeping service. Bliss & Skeen Certified Public Accountants can help. Call today to talk with a specialist.