Penalties for Late or Missed Payroll Taxes in Oklahoma – What Business Owners Need to Know

Small Mistakes = Big Penalties

If you’re an Oklahoma employer, missing a payroll tax deposit or filing is one of the fastest ways to get penalized by the IRS or OTC. Even a one-day delay can cost hundreds — or thousands — in interest and penalties.

"I thought my payroll provider handled that."

"I didn’t know it had to be paid that day."
"We were short on cash, so I held it for a week."

We hear these all the time — and unfortunately, you’re still on the hook.

In this post, we break down:



• What happens when you miss a payroll tax payment or filing
  
  
• What penalties you can expect
  
  
• How to fix it quickly
  
  

What Happens If You Miss a Payroll Tax Payment?

1. The IRS or OTC will assess failure-to-deposit penalties

Depending on how late the deposit is, the penalty ranges from:

• 2%: 1–5 days late
  
  
• 5%: 6–15 days late
  
  
• 10%: 16+ days late
  
  
• 15%: If not paid within 10 days of receiving a notice
  
  

This applies to:



• Federal income tax withholding
  
  
• Social Security & Medicare taxes
  
  
• FUTA (Form 940)
  
  
• Oklahoma state withholding (OW-9)
  
  

What Happens If You Miss a Payroll Tax Filing?

1. The IRS charges failure-to-file penalties:

• 5% per month (up to 25%) of the unpaid tax amount
  
  
• Interest accrues daily
  
  

2. OTC may assess similar penalties for late OW-9 or OW-2 filings:

• Often $100–$500 per missed return
  
  
• May suspend ability to issue tax clearance certificates or renew licenses
  

Common Causes of Missed Payroll Taxes

• Misunderstanding due dates (especially for semiweekly depositors)
  
  
• Switching payroll providers mid-year
  
  
• Assuming QuickBooks or Gusto files everything
  
  
• Not funding payroll accounts in time
  
  
• Ignoring IRS or OTC notices
  
  

Real-World Example

A construction client thought Gusto was paying their Oklahoma withholding taxes. Turns out, Gusto didn’t file the OW-9 or remit payment.

The result?

• $600 penalty from the OTC
  
  
• Tax clearance was frozen, putting a job bid at risk
  
  

We helped clean it up — but they learned the hard way: you’re still responsible.

How to Fix a Missed Payroll Tax Issue

1. Log into EFTPS (IRS) or OKTAP (OTC)
   
   
2. Pay the tax due ASAP — this stops the penalty clock
   
   
3. File any missing returns (Forms 941, 940, OW-9, OW-2)
   
   
4. Call your payroll provider and request filing/payment history
   
   
5. Request penalty abatement (if you have reasonable cause)
   
   
6. Contact your CPA immediately if you receive a notice
   
   

How Boulanger CPA Helps You Avoid Payroll Tax Penalties

We:



• Monitor your payroll filings through iSolved
  
  
• Confirm funding and tax deposits weekly
  
  
• Log into OKTAP and EFTPS to verify filings
  
  
• Respond to IRS and OTC notices on your behalf
  
  
• Request penalty abatements and fix past issues
  
  

We’re your backstop — so you don’t get blindsided.

Got a Payroll Tax Notice? Don’t Wait.

Penalties increase every day. Let’s stop the bleeding and fix the problem.

📞 Call Boulanger CPA at (405) 384-4900
📅 Or schedule your free compliance strategy session today.

Internal Links

• What to Do if Your Payroll Provider Messes Up

• Oklahoma Payroll Audits: What Triggers

• Payroll Records Retention in Oklahoma
  

FAQ – Oklahoma Payroll Tax Penalties