Payroll tax responsibilities are an important part of running a business with employees, and National Payroll Week provides a timely reminder to make sure those responsibilities are being handled correctly.

Observed September 7–11, 2026, National Payroll Week recognizes the payroll professionals who help ensure America’s workers are paid accurately and on time. This year, the IRS is also encouraging employers and employees to use the week as an opportunity for a payroll checkup.

For employees, that means reviewing federal income tax withholding. For employers, it means taking a closer look at withholding, payroll tax deposits, employment tax returns, recordkeeping and payroll security.

Here are seven areas worth reviewing.

1. Payroll Tax Responsibilities Start With Accurate Withholding

Employers generally have a responsibility to withhold certain taxes from employees’ wages, including federal income tax, Social Security tax and Medicare tax.

Federal income tax withholding is generally based on an employee’s earnings and the information the employee provides on Form W-4, Employee’s Withholding Certificate.

That makes accurate payroll a shared process. Employers need reliable payroll procedures, while employees need to provide accurate and updated withholding information.

The IRS provides current information about federal employment taxes through its Understanding Employment Taxes resources.

2. Employees Should Review Their Tax Withholding

Payroll isn’t only an employer issue.

The IRS recommends that employees periodically check their federal income tax withholding, particularly after a major life or income change.

Examples include:

• Starting or leaving a job
• Working multiple jobs
• Getting married or divorced
• Having or adopting a child
• Experiencing a significant change in income

The goal is to determine whether the amount being withheld from each paycheck is still appropriate.

The IRS Tax Withholding Estimator can help employees estimate whether they’re having too much or too little federal income tax withheld. If an adjustment is necessary, the employee can use the results to complete a new Form W-4 and give it to the employer—not the IRS.

3. Federal Payroll Tax Deposits Must Be Made Electronically

Withholding payroll taxes is only part of an employer’s responsibility. Those taxes also need to be deposited properly.

The IRS states that federal tax deposits must be made electronically. Employers have several electronic payment options, including the Electronic Federal Tax Payment System (EFTPS), Direct Pay for businesses and eligible Business Tax Account features.

Deposit schedules and requirements can vary, making it important for businesses to understand which rules apply to them.

Missing a payroll tax deposit isn’t something a business owner wants to discover months later during a reconciliation or after receiving an IRS notice.

4. File Employment Tax Returns on Time

Another important part of payroll tax responsibilities is filing the required employment tax returns.

Depending on the business and type of employment taxes involved, these can include:

• Form 940
• Form 941
• Form 943
• Form 944
• Form 945

The IRS provides electronic filing options for many employment tax forms, including certain corrected returns. Payroll shouldn’t be viewed simply as the process of issuing paychecks. Behind each payroll cycle is an

5. Keep Payroll Records for at Least Four Years

Good payroll recordkeeping isn’t optional.

The IRS recommends that employers keep employment tax records for at least four years after filing the fourth quarter for the year. The records should be available for IRS review when requested.

Maintaining organized records can also make it easier to reconcile payroll, prepare employment tax returns, answer employee questions and investigate discrepancies.

For many businesses, good payroll records work hand in hand with good bookkeeping. Keeping both systems organized throughout the year can make tax preparation and financial reporting significantly easier.

6. Protect Employee and Payroll Information

Payroll systems contain some of a company’s most sensitive information.

Employee names, Social Security numbers, wages, bank information and direct-deposit details can all be attractive targets for criminals.

For National Payroll Week, the IRS specifically recommends that employers and payroll professionals:

• Verify requests to change direct-deposit or employee information through a trusted channel.
• Limit access to payroll systems.
• Use multifactor authentication.
• Remain alert for phishing and credential theft.

A convincing email requesting a change to an employee’s direct deposit information shouldn’t automatically result in a payroll change. Verification procedures can provide an important layer of protection.

7. Review Your Payroll Process Before There’s a Problem

Perhaps the most useful lesson from National Payroll Week is that payroll compliance should be proactive rather than reactive.

Employers shouldn’t wait for a missed deposit, filing problem, employee complaint or IRS notice to review their procedures.

Consider asking:

Are payroll taxes being calculated correctly?

Are federal tax deposits being made on schedule?

Are required employment tax returns being filed on time?

Are payroll and bookkeeping records being reconciled?

Are employee records being maintained securely?

Does everyone involved understand who is responsible for each part of the process?

The IRS maintains a dedicated Payroll Professionals Tax Center containing federal payroll tax information, resources and updates for payroll professionals and their clients.

Payroll tax problems can become particularly serious when a business withholds employment taxes but fails to properly deposit or pay those amounts to the government. If payroll tax obligations have already resulted in an IRS balance, understanding the available tax resolution services can be an important next step.

National Payroll Week Is Also a Good Time for a Paycheck Checkup

Employees can participate in National Payroll Week, too.

Look at your most recent pay statement. Review your federal withholding. Consider whether you’ve experienced a significant change in your income, employment or family circumstances since you last completed Form W-4.

Having too little federal income tax withheld throughout the year can contribute to an unexpected balance due when you file your return. Having substantially more withheld than necessary can mean you’ve had less take-home pay available throughout the year.

The IRS Tax Withholding Estimator is designed to help employees evaluate their current situation and decide whether submitting an updated Form W-4 may be appropriate. We also have a content series that explains withholding by life stage.

Good Payroll Practices Support a Healthy Business

National Payroll Week recognizes the professionals who perform an essential function for businesses and their employees.

But it also provides business owners with an opportunity to examine something that happens quietly throughout the year.

Payroll isn’t simply about making sure employees get paid on Friday.

Effective payroll involves accurate wage calculations, appropriate tax withholding, timely federal tax deposits, employment tax reporting, organized recordkeeping and careful protection of sensitive employee information.

Those payroll tax responsibilities continue every pay period.

At Cheshier Tax Resolution, we work with business owners on the accounting and financial processes that help keep their businesses organized and prepared. National Payroll Week is a good reminder to review your payroll procedures now rather than waiting for a problem to identify weaknesses in the process.

FAQs

What payroll taxes does an employer generally withhold?

Employers generally withhold federal income tax as well as the employee portions of Social Security and Medicare taxes from employees’ wages. Employers also have their own employment tax obligations. The specific requirements depend on the employer and circumstances.

How often should employees check their tax withholding?

The IRS recommends reviewing withholding periodically and particularly after significant life or income changes, such as marriage, divorce, having a child, changing jobs, working multiple jobs or experiencing a major income change.

How long should employers keep payroll tax records?

The IRS says employers should generally keep records of employment taxes for at least four years after filing the fourth quarter for the year.

Are federal payroll tax deposits made electronically?

Yes. The IRS requires federal tax deposits to be made by electronic funds transfer. Options include EFTPS and other eligible electronic IRS payment methods.

Where can employers find official payroll tax guidance?

The IRS provides resources through its Payroll Professionals Tax Center, along with Publication 15 (Circular E), Employer’s Tax Guide and Publication 15-T, Federal Income Tax Withholding Methods.

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