June 2022: The Small Business Owner’s HR, Benefits, Payroll, and Tax Compliance Deadlines

Feli Oliveros

We’re nearly halfway through the year now—but don’t expect your HR to-do list to get any smaller. Here are all the benefits, payroll, and tax deadlines and deliverables you’ll want to know about for the month of June. 

Federal holidays

June 20, 2022: Juneteenth (observed)

Juneteenth typically falls on June 19th, but since the date lands on Sunday this year, this new federal holiday is observed on Monday instead. 

Tax and payroll compliance deadlines

Payroll tax deposits (for semi-weekly depositors)

Companies with employees are required by the Internal Revenue Service (IRS) to deposit their payroll taxes on different schedules throughout the year, depending on which returns they report their taxes on, their past filing history, and other factors. 

If your company reports taxes using Forms 941, 943, 944, or 945, you’ll follow either a semi-weekly or monthly payroll deposit schedule. To determine which one you’ll use, find out how much you withheld in federal income and FICA taxes (also known as Social Security and Medicare taxes) between July 1, 2020 and June 30, 2021 (the lookback period). 

If your total tax liability during the lookback period was more than $50,000, you’d deposit employment taxes according to the following schedule:

If payday for your employees is on…Deposit employment taxes by…
WednesdayThe following Wednesday
ThursdayThe following Wednesday
FridayThe following Wednesday
SaturdayThe following Friday
SundayThe following Friday
MondayThe following Friday
TuesdayThe following Friday

If your company paid less than $50,000 in taxes, follow the monthly deposit schedule instead (more on this below). 

Make your deposits through the Electronic Federal Tax Payment System (EFTPS) in a timely manner—otherwise, you may find yourself paying penalties of up to 15%.

For more information about payroll tax deposits and your deposit schedule, read Publication 15

Depending on your company’s location, you may be subject to state and local payroll taxes as well. Check with your state and local tax authorities for further details. 

June 10, 2022

Form 4070 due to employers

Employees who earned more than $20 in tip income must submit Form 4070 to their employers. The deadline for reporting tip income earned in May 2022 is June 10, 2022. 

June 15, 2022

Payroll tax deposits (for monthly depositors)

The IRS considers you a monthly payroll depositor if you meet one of the following qualifications:

  • Are a new employer with no employees during the lookback period
  • Paid $50,000 or less in payroll taxes during the lookback period

If you fall in this category, you must deposit your payroll taxes for May by June 15, 2022. Just like with semi-weekly deposits, make your payments through the EFTPS.

Estimated tax payment for Q2 due to the IRS

People and companies that make quarterly estimated tax payments—which generally includes C corporations, S corporation shareholders, partners, independent contractors, freelancers, and gig workers—must make their second payment of the year by June 15, 2022.

Pay online, over the phone, or via mail using Form 1040-ES.

For more information on estimated taxes, review Publication 505.

Note that, depending on where your company is located, you may be required to pay state and local estimated taxes as well. Contact your state and local tax authorities to learn more.  

Tax returns due for military personnel and US taxpayers living and working abroad

Business and personal income tax returns (plus tax payments) for the following groups are due by June 15, 2022:

  • On-duty military personnel abroad who don’t qualify for the longer combat zone extension
  • US citizens and resident aliens who live and work outside of the US and Puerto Rico

If you fall into one of these categories, make sure to include a statement along with your return explaining which of the above situations apply to you. 

For details on the special rules that apply for US taxpayers living and working abroad, read Publication 54

Form 4868 due for military personnel and US taxpayers living and working abroad

Military personnel as well as US taxpayers living and working abroad must file Form 4868 by June 15, 2022 to receive an automatic four-month extension on filing their income tax returns. 

Keep in mind that, even if you receive a filing extension, your tax payment is still due by June 15 to avoid penalties. 

Tax filing and payment deadline for Puerto Rico natural disaster victims

Victims of the storms, flooding, and landslides that affected Puerto Rico starting on February 4 now have until June 15, 2022 to file and pay their taxes. Additionally, this disaster relief gives victims more time to make IRA contributions for 2021 and make estimated tax payments for 2022. 

If you live outside of the disaster area but meet one of the following qualifications, you may be able to receive tax relief as well:

  • Have a business located in the disaster area
  • Have tax records located in the disaster area
  • Are assisting with disaster relief

June 30, 2022

End of Q2 for companies following the calendar year

If your company follows a calendar year, the second quarter (Q2) ends on June 30, 2022.

HR compliance deadlines

June 15, 2022

Retirement plan employer contributions due for certain taxpayers

Puerto Rico disaster victims as well as military and US taxpayers abroad have until June 15, 2022 to make retirement plan employer contributions that are deductible on their employer tax returns. 

June 29, 2022

Deadline for processing Employee Stock Ownership Plan (ESOP) diversification elections for calendar year plans

The Internal Revenue Code allows ESOP holders to diversify their stock account once they become a qualified participant—when they reach the age of 55 and have participated in the plan for 10 years. 

Reaching this status triggers the six-year qualified election period for these participants. As plan sponsor, you’re responsible for processing this diversification election by June 29, 2022. 

Note that some plans give participants even more time to diversify their account, so you’ll want to check with your plan document or your plan provider if you have any questions.

June 30, 2022

Mid-year benefits review for employees

Providing employee benefits takes up a lot of your business’s resources, so it’s important that your employees make the most of these offerings. You can help them do so by encouraging them to take advantage of benefits such as annual health checkups, PTO, and other assistance programs throughout the year. 

By setting a reminder for them halfway through the year, they’ll be more likely to set up any appointments needed and use up their benefits before year’s end. 

Deadline for issuing distributions due to failed ADP / ACP test for EACAs

When your eligible automatic contribution arrangement (EACA) doesn’t have Safe Harbor status, you’re required to conduct nondiscrimination testing on these plans on a regular basis.

These tests—also known as the Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) tests—determine whether accounts belonging to rank-and-file employees and those belonging to managers, owners, and other higher-compensated employees (HCEs) receive a proportional amount of contributions. 

If these tests reveal that there is a discrepancy that benefits high-income earners, you must contribute more funds to your rank-and-file plan participants, correct excessive distributions made to HCE plans, or both. 

Plan sponsors for EACAs that failed the ADP or ACP tests during the prior plan year and choose to make corrective distributions to HCE plans must process distributions these refunds by June 30, 2022 to avoid a 10% excise tax. 

Lifetime income illustrations and retirement plan benefit statements due to participant-directed individual account plan participants

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 mandated that two lifetime income illustrations (LIIs), furnished at least every year, must be added to the pension benefit statements for individual account plans. 

These disclosures provide details on the monthly payments the plan participant would receive if the account balance was used toward lifetime income streams. 

Participant-directed individual account plan participants must receive their first LII with their quarterly statement by June 30, 2022.

For more information, review this Department of Labor document on the LLI Interim Final Rule.

IRS special accommodation for retirement plan participant benefit elections expires

In 2020, the IRS waived the requirement that a plan administrator or notary public needed to be physically present to witness certain changes that retirement plan participants made, or consent to changes made by the participant’s spouse if needed. 

Instead, it allowed notary publics and plan administrators to witness these elections remotely through live audiovisual technology. 

However, on June 30, 2022, these special accommodations will expire. Moving forward, all benefit elections made by retirement plan participants must be made in person.

Feli Oliveros Feli Oliveros is a freelance finance and business writer with experience covering personal and small business finance. In 2015 she graduated from UCLA, where she earned her bachelor’s degree in English and minored in Anthropology.
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