When federal payroll taxes are paid 20 days late, what is the penalty as a percentage of the amount due?

The penalty for paying federal payroll taxes late is calculated as a percentage of the amount due, based on the specifics of the delay. When payroll taxes are paid 20 days late, the applicable penalty is indeed 10% of the amount due.

The IRS outlines that penalties for late payments escalate based on the length of the delay. In generally accepted guidelines, a 10% penalty applies for payments that are made more than 15 days late but less than 30 days late. Therefore, a payment that is 20 days overdue correctly incurs a penalty of 10%.

Understanding these timeframes and the associated penalties is critical for businesses to avoid substantial additional costs and ensure compliance with federal tax regulations.