When a business employs people, they become responsible for employment taxes in two ways. First, the business must withhold part of an employee’s wages in order to pay income taxes, Social Security taxes, and Medicare taxes. These payroll taxes are referred to as trust fund taxes because the business holds the…
The COVID-19 epidemic has created situations where employees are not able to work because they tested positive for the virus or have been quarantined as a result of a governmental order. It has also caused parents to miss work because their children’s school has closed due to the outbreak and…
Considering how many priorities, problems, and distractions a business owner deals with every day, it should come as no surprise that IRS payroll tax issues may arise. Whether you filed your payroll returns late or failed to make payroll tax deposits, unresolved business tax problems can become major legal and…
If you’re a small business owner you may have experienced unpaid payroll tax problems at one time or another. Once you fall behind in making your payroll tax deposits it can be difficult to catch-up.
If you run your business as an S corporation, you’re probably both a shareholder and an employee. Therefore, the company should pay you a salary for the work you do for the business, which is subject to payroll taxes as well as income tax withholding.
Employers must withhold payroll taxes from employee paychecks and send the withheld money to the Internal Revenue Service. Every company of all sizes has an obligation to collect and pay payroll taxes, or 941 taxes as they are also called.
The Internal Revenue Service has rolled out a new program, the Early Interaction Initiative, designed to help identify employers who begin to fall behind in making payroll tax deposits and assist them in meeting their payment and reporting responsibilities.
If you’re like most self-employed individuals you want tax relief. A simple tax planning idea for a sole proprietorship is to employ your children in the business.
Although the economy has slowly improved, we still receive a steady stream of phone calls from business owners throughout Palm Beach, Broward and Miami-Dade counties needing help resolving payroll tax problems.
The IRS has established a program that allows taxpayers to voluntarily reclassify independent contractors as employees and pay significantly reduced prior employment taxes (approximately 1% of one year’s worth of compensation), with no penalties or interest. The voluntary classification settlement program (VCSP) is part of a larger IRS “fresh start”…