March 2023: The Small Business Owner’s HR, Benefits, Payroll, and Tax Compliance Deadlines
As the end of the first quarter approaches, don’t forget to flag these important dates for taxes, payroll, and HR compliance. Keep reading to take note of all your key business deadlines in March.
March 31, 2023
The last day of the month is Cesar Chavez Day, a federal holiday that celebrates the legacy of civil rights and labor movement activist Cesar Chavez.
Tax and payroll compliance deadlines
Payroll tax deposits (for semi-weekly depositors)
The Internal Revenue Service (IRS) requires employers who file Forms 940 and 941 to deposit payroll taxes at different frequencies throughout the year.
Semi-weekly depositors—those who report more than $50,000 in payroll taxes during the lookback period of July 1, 2021 to June 30, 2022—must follow the schedule below:
|If payday for your employees is on…||Deposit employment taxes by…|
|Wednesday||The following Wednesday|
|Thursday||The following Wednesday|
|Friday||The following Wednesday|
|Saturday||The following Friday|
|Sunday||The following Friday|
|Monday||The following Friday|
|Tuesday||The following Friday|
However, if you accumulate $100,000 or more of tax liability in a single day, the IRS says you must deposit the amount by the following business day, regardless of whether you normally deposit on a semi-weekly or monthly basis (more on monthly deposits below).
To learn more about federal payroll tax deposits, read Publication 15.
Keep in mind that some state and local governments that collect payroll taxes will also expect their own deposits, and those deadlines may be different from the federal ones. For more information, contact your state and local tax agencies directly.
March 1, 2023
Form 1040 filing deadline
If you’re a calendar-year farmer or fisherman, you need to file Form 1040 and pay any tax due by March 1. However, if you paid your 2022 estimated tax payments by January 15, 2023, you have until Monday, April 17 to file.
If you’re a farmer or fisherman who operates on a fiscal tax year (starting after January 1), you have two options:
- Pay all your estimated tax by the 15th day after the end of your tax year
- File your return and pay all the taxes you owe by the 1st day of the 3rd month after the end of your tax year
Read more about estimated taxes for farmers and fishermen here.
March 10, 2023
Employee tip reporting deadline for February
If your employees earn tips, they’re required to report to you any tips of $20 or more that they earned during the month of February. You can learn more about tip withholding and reporting requirements here.
March 15, 2023
Payroll tax deposits for monthly depositors
If your company follows the monthly payroll tax deposit schedule (meaning that you reported less than $50,000 in payroll taxes during the lookback period), then your tax deposit for February payrolls is due on March 15.
S corp (Form 1120-S) and partnership (Form 1065) tax returns due
If you own an S corporation (or if your LLC is taxed as an S corp), you’ll use Form 1120-S to report your income, losses, and dividends as a shareholder of the company. This form is due March 15.
If you own a partnership (or an LLC set up as a partnership), you’ll use Form 1065 to report the gains, losses, deductions, and credits of your operation. Keep in mind that each partner is responsible for paying their share of income from the business on their personal tax returns (Form 1040).
On top of the tax returns, S corps and partnerships must also submit a Schedule K-1 or Schedule K-3 that outlines the percentage of profits and losses assigned to each shareholder or partner in the business. You must submit these forms to the IRS by March 15, unless you apply for an extension.
You can request an automatic six-month extension on the deadline for these forms by submitting Form 7004 to the IRS by March 15. This extends your deadline to September 15, 2023. Keep in mind that if you take this option, you still need to pay your estimated taxes; otherwise, you could receive a penalty.
Forms 8804 and 8805 filing deadline for partnerships
If you own a partnership that operates on a calendar year, you have to file Form 8804 by March 15. Form 8804 is used to report the total liability for your partnership’s tax year.
If one or more of your partners is international, you also have to file Form 8805 (one for each separate partner), which is used to show the amount of effectively connected taxable income (ECTI) and the total tax credit allocable to the international partner for the partnership’s tax year.
Read up on partnership tax forms here. Again, if you need an automatic six-month extension on this form deadline, you can file Form 7004.
Form 2553 filing deadline to elect S corp status
If you want to be taxed as an S corp for the calendar year 2023, you need to make an official election by filing Form 2553. You have to file the form no later than two months and 15 days after the beginning of the tax year when the election is to take effect; in this case, the deadline is March 15.
To learn more about filing Form 2553, read the IRS instructions here.
Forms 1042 and 1042-S due
Form 1042 reports income tax withheld from distributions and certain other payments made to nonresident aliens. Form 1042-S reports retirement plan distributions and certain other payments made to nonresident aliens that are subject to income tax withholding.
You have to file both of these forms by March 15, either electronically through the FIRE system, or via post along with Form 1042-T.
If you need an automatic 30-day extension to file Form 1042-S, file Form 8809 by March 15. If you need an automatic 30-day extension to file Form 1042, file a separate Form 8809.
Do I Need Payroll Software for My Small Business?Finances and Taxes
March 31, 2023
Quarter 1 of 2023 ends
If your business operates on a calendar year, the first quarter of the year (Q1) ends on March 31.
Deadline to file Forms 1099 electronically
All 1099 forms—which track different kinds of income or payments taxpayers receive—must be turned in to the IRS by March 31 via the FIRE system for electronic filing. That includes Form 1097, 1098, 1099, and W-2G.
Form 8027 e-filing deadline
If you run a large food or beverage establishment, you have to file Form 8027 with the IRS by March 31 to report receipts from food and beverages, as well as the total amount of tips your employees reported to you if you.
Food or beverage operations are defined by the IRS as businesses:
- that do business in the United States
- where employees usually receive tips
- with more than 10 employees on a typical business day during the last calendar year
To get more information about this tax document, review the form’s instructions on the IRS website.
Forms 3921 and 3922 e-filing deadline
If your business is a corporation that transfers shares of stock, and those shares of stock were exercised in the calendar year, you may need to file Form 3921 and Form 3922 to the IRS electronically by March 31 (or by February 28 if filing on paper).
You can learn more about filing Forms 3921 and 3922 here.
Form 2290 filing deadline
If you’ve registered a heavy highway motor vehicle (with a taxable gross weight of 55,000 pounds or more) that was first used in February 2023, you have to file Form 2290 by March 31.
Per the IRS, you must file the form by the last day of the month following the month in which you first used the vehicle on a public highway.
To learn more about Form 2290, review the IRS’ instructions and information.
Form 730 filing deadline
You have to file Form 730, the monthly tax return for wagers, if you meet the following criteria and accepted wagers during February 2023:
- are in the business of accepting wagers
- conduct a wagering pool or lottery
- are required to be registered and received wagers for or on behalf of another person, but did not report that person’s name and address
Learn more about Form 730 here.
Form 8809 e-filing deadline
If you need to request more time to file your information returns, you have to file Form 8809 electronically through the FIRE system by March 31. Filing this form automatically extends the time to file by 30 days. Form 8809 lets you request an extension to file any of the following forms:
- 1094-C, 1095
- 1097, 1098, 1099
- 3921, 3922
Keep in mind that if you don’t file the above forms on time and don’t have a valid extension, you may have to pay a penalty to the IRS.
Learn more about the application for extension of time here.
HR compliance deadlines
March 1, 2023
MEWA M-1 filing deadline
Multiple Employer Welfare Arrangement (MEWA) is a group health insurance plan that gives coverage to the employees of two or more employers. If you have MEWA or any other employee welfare benefit plan, you have to file an annual report to the Department of Labor (DOL) using Form M-1. This report is due by March 1.
You can see filing instructions from the DOL here.
HIPAA breach notification deadline for incidents with fewer than 500 people
According to the HIPAA Breach Notification rule, HIPAA-covered entities are required to notify affected individuals if they experience a breach of unsecured protected health information, and report the event to the Office for Civil Rights (OCR).
Breaches that took place in 2022 and affected fewer than 500 people must be reported to those people and the OCR by March 1. Submit these notifications to the Secretary of the Department of Health and Human Services (HHS) on the HHS website.
Deadline for creditable coverage disclosure (for calendar year plans)
The Medicare Modernization Act mandates that businesses that have Medicare Part D-eligible employees and offer group health care plans with prescription drug coverage must disclose to the Centers for Medicare & Medicaid Services (CMS) the creditable coverage status of their prescription drug plans.
If this applies to you and you’re on a calendar year plan, you must submit this information online through the Disclosure to CMS form by March 1 (or within 60 days of the start of the plan year if they’re on a non-calendar year plan).
For more information, including comprehensive instructions and screenshots, see the CMS guide.
March 2, 2023
OSHA e-filing deadline
The Occupational Safety and Health Administration (OSHA) requires most companies with 10 or more full-time employees to keep an annual record of all reportable workplace injuries and illnesses, the time and place they occurred, and other relevant details using Form 300A.
If you employ 250 or more employees in an industry covered by the recordkeeping regulation (or if you employ between 20 and 249 employees in certain high-risk industries), you have to file Form 300A electronically using the OSHA e-file website.
Deadline for furnishing Forms 1095-C and 1095-B to employees
Applicable large employers (ALEs)—those with 50 or more full-time equivalent employees—must send Form 1095-C to all of their employees who are eligible for health insurance coverage, detailing the health benefits they offer and sharing the employee’s enrollment status.
The due date for giving these forms to employees is March 2 (except for California employers, who needed to furnish these forms by January 31, 2023). If you send these forms by mail, make sure they’re postmarked by this date, since the IRS doesn’t offer extensions.
If you’re self-insured and not considered an ALE, you need to provide Form 1095-B (along with Form 1094-B) to any employees identified as “responsible individuals” on the coverage form. Form 1095-B includes information about the health benefits you offer and your employee’s enrollment status. Form 1094-B is the transmittal form that must accompany Form 1095-B.
To learn more about filing Forms 1095-C and 1095-B, you can read the IRS instructions here.
March 31, 2023
Forms 1094-C, 1095-C, 1094-B, and 1095-B e-filing deadline to the IRS
If you provide Forms 1095-C to your employees, you must also submit these forms to the IRS. If you have 250 or more 1095-C forms to submit, you’re required to do so electronically through the Affordable Care Act Information Returns (AIR) platform by March 31. You’ll also need to turn in a Form 1094-C cover sheet along with these forms.
To learn more, read the 2022 Instructions for Forms 1094-C and 1095-C.
If, on the other hand, you’re not considered an ALE and you provided Form 1095-B to your employees, you must submit Form 1094-B and Form 1095-B to the IRS. If you’re filing 250 or more information returns, you must do so electronically by March 31.
To learn more, read the 2022 Instructions for Forms 1094-B and 1095-B.
EEO-1 reporting and filing deadline
The US Equal Employment Opportunity Commission (EEOC) requires all private sector employers with 100 or more employees (and federal contractors with 50 or more employees) to submit an annual report that lists demographic workforce data categorized by race, ethnicity, gender, and job role.
The EEOC requires that you file your EEO-1 report by March 31 via the EEO-1 Component 1 Online Filing System (OFS). You can find more information, including how to create an account with the OFS, on the EEOC’s website.