Did I say the state had nothing to complain about?  My state starts new employers out at a 2.7% rate on the first $7,000, so the amount involved here for two people is less than $400.  If they ask for it, then pay it.  The point is that it's not going to get any better by filing 2021 quarterlies in late 2022.  

The power went out at my office yesterday afternoon -- maybe showing solidarity for Ukraine -- so I went and got a haircut.  My friend, client and barber told me about the 87,000 armed IRS agents that are on their way if the socialists get re-elected.  Since IRS relies on fear as the pillar of its compliance program, the increased budget may already be serving its purpose.  But the truth is out there:

"In the past, the IRS audit rate for partnerships and S corporations has been very low—around 0.05% (or one out of every 200 returns). This audit rate is one-half the rate for individuals and one-quarter the audit rate for C corporations. In addition, about 50% of all partnership and S corporation audits in the past resulted in no changes to the tax return."

https://www.hsdtaxlaw.com/irs-audits-of-partnerships-and-s-corporations-are-coming-are-you-ready#:~:....

In the unlikely event of an audit, what they owe isn't going to be any worse than if they try to put the toothpaste back in the tube today.  What's important, even IRS will admit, is to get them into compliance for 2022 and future years.