What is the most critical action an employer must take on the fifteenth of each month?

Paying IRS taxes is a vital action for employers as it ensures compliance with federal tax obligations. Each month, employers are typically required to withhold federal income taxes, Social Security, and Medicare taxes from employee paychecks and remit them to the IRS. Missing these deadlines can lead to penalties and increased interest on unpaid taxes, which can significantly impact a business's financial standing.

While evaluating employees, filing reports, or calculating bonuses are important tasks within an organization, they do not have the same critical financial implications tied to federal law as the timely remittance of payroll taxes. Proper tax payments help maintain the employer's good standing with the Internal Revenue Service and ensure that employees' contributions towards Social Security and Medicare are accurately credited, providing them with future benefits. Thus, fulfilling tax obligations each month is crucial to the overall operational health of the business.