Payroll Tax Problems
Resolving payroll tax problems
The first step the IRS will naturally take is to pursue tax lien. The lien is a nightmare because it carries with it something known as the 100 percent penalty. Basically, the IRS will figure out the amount of payroll tax and charge a penalty equal to 100 percent of this amount.
The next step taken by the IRS is basically collection of the amount due. Agents will physically come to business and grab all assets in an effort to satisfy the amount due. It is ugly and business killer.
A Payroll Tax Problem leads to payroll tax liability and there is no worse liability. With payroll tax liability. The individuals in charge of collecting, managing and depositing payroll are personality liable for the debt. All employers in the Unite States are required to withhold payroll taxes from the pay provided to employees.
Payroll taxes contain federal income tax, social security and Medicare taxes together are referred to as FICA tax, which stands for the Federal Insurance Contributions Act. Most of the common Payroll Tax Problems occur from the employer not fully understanding all aspects of the required payroll taxes. To process their payroll employers must first calculate the gross pay for each employee. Then the different payroll tax amounts are subtracted from the gross pay amount, with the result being the net pay, which is the amount the paychecks are made out in.
Although there are many ways to run into difficulties with such a complex process, the most common Payroll Tax Problems employers experience include:
Past due to collection of payroll taxes and late filing of reports which can lead to penalties, interest charged and finally penalty of the business. Careless record keeping which can be difficult when dealing with an IRS audit. Since small business owners in the past are the largest source of uncontrolled taxes according to the IRS the agency is focusing their enforcement efforts on smaller businesses. Many Payroll Tax Problems are exposed during the course of these audits. Borrowing from payroll tax money which is against the law.
It is given that all legit businesses must deal with taxes and accept it as part of doing business. In addition business resources such as time money and finance have to be reluctantly abstracted to resolve tax law issues whenever they rise. It would be better for a business to work with third party law stiffs in preventing and resolving tax issues, this would permit a business to not worry about taxes and come on their core functions.
Payroll Tax problem resolution and IRS Tax help.