Payroll taxes are a significant element of any business’s tax obligations, representing a crucial and often complex element of your company’s financial responsibilities. Ensuring timely and accurate payment of payroll taxes ensures your business operates within legal boundaries and maintains good standing with the IRS.
As vital and standard as all of this is, it’s easy to get lost in the day-to-day business or make errors that can accumulate over time. Relying on the experience of an attorney to fine-tune your payroll processes isn’t just good practice; it’s a protective measure against potential pitfalls.
Withholding From Employees
Employing W-2 workers in the U.S. brings with it the responsibility to deduct certain amounts from their paychecks for social security, Medicare, and federal income taxes. This isn’t a discretionary action for your business – it’s mandated by law.
Businesses must not only ensure they’re withholding the correct amount but also must consistently do so for every paycheck for all qualifying employees. Failing to apply the proper withholding requirements doesn’t only jeopardize your company’s standing with the IRS but can also lead to potential hardships for your employees. When tax season arrives, these employees rely on the accuracy of these withholdings to claim the appropriate tax refunds. Some of those withholdings are returned during tax season.
Filing Payroll Tax Returns
Withholding the right amount from your employee paychecks is one key element to all this, but it isn’t the end of the responsibility. The withheld funds must make their way to the government.
This is done when your business files its payroll tax returns. In doing so, you’re not just paying the withheld amount, but you’re also making a declaration of the accuracy and diligence of your company’s finances. Without a meticulous accounting system that tracks every cent withheld, it’s all too easy to either overpay, resulting in financial losses, or underpay, leading to legal consequences.
What Happens if a Company Gets Payroll Taxes Wrong?
Errors or omissions in payroll tax filing can have grave consequences for businesses. When companies fail to file or make errors in their filings, they open themselves up to substantial penalties. The government imposes penalties ranging from 2% to 15%, depending on the duration of the oversight or inaccuracy.
Get Payroll Taxes Done Right with Attorney Robert V. Boeshaar
Navigating the complicated network of payroll tax regulations isn’t a task without the know-how. Even long-time business owners face difficulties in navigating U.S. tax law.This is where Attorney Robert V. Boeshaar comes in. His extensive experience in tax law as an attorney for both the IRS and, today, for the people and businesses of Washington, make him the perfect asset for any business aiming to get their payroll taxes done right. Contact Robert V. Boeshaar, Attorney at Law, LL.M., PLLC, and ensure your business doesn’t end up in trouble with the IRS.
Robert V. Boeshaar Attorney at Law, LL.M.,PLLC
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