Every so often, your company might receive notifications from the IRS or state agencies concerning your tax and unemployment accounts. Many of these notices can be resolved by independently verifying and adjusting your settings within Niural.
Should the notice pertain to altering your deposit schedule or tax rate, you can manage these adjustments directly through Niural:
- Update your unemployment tax rate.
- Modify your federal deposit schedule.
- Adjust your state deposit schedule.
If there's a need to revise other federal or state details, this article provides guidance on updating them.
Niural isn't directly notified by agencies, so it's crucial to take action before the specified deadlines or effective dates for any requested changes.
Common IRS Notices
Deposit Schedule Change
The IRS determines your Federal Income Tax deposit schedule by analyzing your prior deposit amounts within the 'lookback period.' Your company will be allocated either a semi-weekly or monthly deposit schedule.
Should the IRS alter your schedule, they'll issue a notification to inform you.
It's crucial to take note of the effective date of this new schedule—ensuring timely tax deposits is vital to avoid penalties and interest.
How to modify your federal deposit schedule
To update your federal filing form in your customer profile (to 941 or 944 if joining after April 1 in the current year), follow these steps:
- Go to the Company section and select Tax Setup.
- Under "Federal Tax Setup," click on edit.
- Click on "Deposit Schedule"
- Input the change from your IRS notice for the future filing form.
- Click on Save.
Additional Information about Form 944
The IRS permits certain small businesses to file annually on Form 944 instead of quarterly on Form 941. While this might appear advantageous for small employers, the IRS could alter your filing requirement mid-year, resulting in notices and penalties for late returns.
Filing more frequently (using Form 941) can prevent such issues, and the cost remains the same regardless of how frequently you file (quarterly or annually).
Refund
A tax overpayment might lead to a credit owed to your company, which you'll be notified about.
If you're uncertain about the reason behind the credit, consider contacting the IRS directly for further clarification.
In case you still have queries, reach out to support@niural.com.
Note: If an overpayment is mistakenly refunded and accepted, the business could be held liable for penalties and/or interest on the refunded amount if it needs to be repaid to the agency.
Amount Due
In case the notice specifies an amount due:
- Contact the IRS to ask for further details or to request an extension or hold on the account while Niural prepares to assist.
- Reach out to support@niural.com with the notice. This will allow our tax specialist team to review the notice and offer assistance.
Common State Notices
Deposit Schedule Change
Similar to the IRS, if a state agency alters your State Income Tax deposit schedule, they'll notify you. These notices typically arrive towards the end of the year for the following year, but it's wise to stay vigilant.
Some states align with your federal deposit schedule, while others don't.
Navigate to the 'State Tax Setup' in your Niural account and edit the Deposit Schedule field to update your separate state schedule if applicable.
Unemployment Rate Updates
State audits annually assess your company’s unemployment tax rate based on your history. Upon changes, the state sends a notice detailing the new rate and its effective date.
Ensure you update the unemployment rate in Niural before the specified effective date in the notice.
Refund
Excess tax payments might result in a credit owed to your company, signaled by a notice.
If uncertain about the credit, directly contact the agency for more details.
Before requesting or cashing a refund check, send the full notice to support@niural.com for review.
Note: Accepting a mistaken refund might hold your business liable for penalties and/or interest if repayment to the agency becomes necessary.
Amount Due
Notices indicating an amount due warrant immediate attention.
Contact the agency for additional information or to request an extension or account hold until Niural can assist.
Send us the full notice at support@niural.com for our tax specialist team's review and assist.
Update your unemployment tax rate
When you receive an unemployment rate notice from your state, here's what to do:
Notice: Unemployment Compensation Contribution Rate Notice for Calendar Year 20XX.
Issuing Agency: This varies by state and is the department responsible for collecting unemployment tax.
Action Needed: Update the unemployment rate in your Niural account.
Details: The notice informs you about a change in your unemployment rate and its effective date, typically stated at the top. For instance, it might indicate: "Your employer contribution rate effective 01/01/2024 is 0.054332."
To update the rate in Niural,
- Navigate to the Company section, select Tax Setup.
- Under the applicable State Tax section, click Edit.
- Update the new rate in the SUI Rate field.
- Enter the percentage rate as shown on the notice. For instance, if the notice specifies a rate of 0.054332, enter 5.4332%.
Note: Updating after the notice deadline may result in penalties applied by the agency.