We can help you in resolving your Business Payroll Taxes problems
As a business owner, are you meeting your payroll tax obligations? Are you paying your taxes accurately and in a timely manner? Do you understand that by not paying taxes, you are exposing yourself to serious problems in the long term?
Our expert payroll tax attorneys can resolve all your payroll tax problems and prevent any future complications.
Understand Your Payroll Taxes
Federal and State Governments impose Payroll Taxes on you, which are based on the wages you pay to your employees. It is your responsibility to make regular schedule reports to the IRS detailing the amount of Payroll Taxes owed and paid by you.
Following are the different types of Payroll Taxes:
- Withholding Taxes are taxes that you, as a business owner, are required to withhold from the wages of the employees and pay directly to the Government. These taxes are available to your employees as refundable tax credits.
- Federal Insurance Contribution Act (FICA) Taxes, comprise your payment to two Federal programs – Social Security and Medicare. The income on which FICA taxes are applied changes annually.
- Federal Unemployment Taxes (FUTA), are the taxes levied by the Federal government that you need to pay in full, for your employees to receive unemployment benefits. In case your state has its own unemployment taxes, you may receive some credits towards your FUTA taxes.
- State Unemployment Taxes are determined by each state separately and within the state for each employer separately. If you lay off a higher percentage of workers, which means more of your workers depend on Unemployment Insurance, you may need to pay higher tax rates than those firms that lay off fewer workers.
- Local Payroll Taxes may be levied by cities and municipalities.
Remit and Report Payroll Taxes
You need to remit income taxes and FUTA taxes to IRS in a timely manner. You also need to file several different reports regarding Payroll Taxes:
- Form 941, regarding number of employees, their wages and taxes
- Form W-2, regarding annual settlement of taxes withheld
- Form W-3, regarding formal reconciliation on taxes paid on Form 941 and Form W2
- Form 940, regarding FUTA taxes owed and paid
Beware of Trust Fund Recovery Penalty
Failure to withhold or remit Payroll Taxes, known as Trust Fund Recovery Penalty (TFRP), allows IRS to hold individuals associated with the business personally liable for 100% of the unpaid amount, if the business fails to meet its Payroll Tax obligations. IRS considers an employer, who fails to pay, to be violating a trust and, hence, imposes particularly severe penalty. The TFRP can be applied along with civil and criminal penalties and may include seizure of business assets and forced closure of the business. Also, being a penalty, the TFRP is not erased by bankruptcy.
How can we help?
Our experienced payroll tax attorneys can assist you with understanding your tax obligations, completing required paperwork, reporting to the IRS and negotiating with the IRS.
Call us today at for quick and reliable solution for all your tax related queries at PHONE_NUMBER or visit our website at http://incometaxhelpline.com