Payroll Tax Filing Requirements for 2025 – A Guide for Small Businesses

Introduction

Managing payroll is more than just issuing paychecks — it also means staying compliant with IRS and state tax filing requirements. As 2025 approaches, small business owners must understand which payroll tax forms to file and when. This guide breaks down the essentials so your business stays penalty-free and compliant all year long.

Key Payroll Tax Forms for 2025

Small businesses must file several payroll-related forms with the IRS and provide year-end statements to employees and contractors. Here are the key forms to know:

Form 941 is the Employer’s Quarterly Federal Tax Return. It reports income taxes, Social Security, and Medicare withheld from employee paychecks, along with the employer’s share of those taxes. It’s due quarterly.

Form 940 is used to report annual Federal Unemployment Tax Act (FUTA) taxes. It’s filed once per year and helps fund unemployment compensation to workers who lose their jobs.

Form W-2 must be filed for each employee, showing total wages paid and taxes withheld. You must provide W-2s to employees and file copies with the Social Security Administration (SSA) by January 31.

Form W-3 is a summary of all W-2 forms and is sent to the SSA along with the individual W-2s.

Form 1099-NEC is used to report payments of $600 or more made to non-employees such as freelancers, contractors, or vendors. This must also be filed by January 31.

Payroll Software That Makes It Easier

Using trusted payroll software helps automate calculations, tax form preparation, and electronic filing. At Loyal Tax Services, we work with top platforms like Gusto, QuickBooks Payroll, ADP, Patriot, and Paylocity to ensure every client stays on track.

These tools streamline payroll processing, calculate taxes accurately, generate compliance reports, and help avoid IRS penalties. Whether you're running payroll weekly, biweekly, or monthly, using one of these systems can significantly reduce errors and save time.

State Payroll Tax Obligations

In addition to federal filings, many states require their own income tax withholding and unemployment filings. Due dates and forms vary by state, so it’s important to stay up to date or consult a payroll expert.

Stay Compliant With Loyal Tax Services

Filing the wrong form or missing a deadline can result in costly penalties. At Loyal Tax Services, we help small businesses manage payroll processing and handle all required tax filings accurately and on time — from Form 941 to W-2s and 1099s.

Need help with 2025 payroll compliance? Contact us today and let our team simplify your payroll processes.