Employers can avoid payroll tax fines by streamlining their payroll procedures to ensure that all wages withheld for taxes and compensation paid to employees are promptly remitted and reported to the appropriate government agencies. Here are a few things in this blog to stay always prepared.
Keep abreast of IRS announcements
Employers can learn about modifications to tax laws and new form submission deadlines by reading the IRS’s news releases and tips, which are frequently published. Additionally, businesses should closely monitor tax announcements in any states where they have employees.
Keep a budget for employment taxes
Budgeting without accounting for payroll costs may result in cash flow problems and the inability to pay taxes. To better manage their tax withholdings and payments, many businesses set up a separate bank account just for payroll.
Utilize full-service payroll software or a payroll provider
Payroll processing is frequently automated by employers who want to reduce their risk of tax penalties while also freeing up more time to concentrate on strategic business initiatives. Payroll companies can help clients with employee wage calculations, tax withholding, and submission to government agencies on their behalf.
What takes place if you are unable to pay payroll taxes?
Usually, the IRS notifies businesses that are unable to pay their employment taxes and assesses a financial penalty. The IRS may put a lien on the employer’s assets or bring legal action if the taxes are not paid and it is determined that the failure was deliberate.
Who has responsibility for delinquent payroll taxes?
Any person, such as an accountant or executive leader, who is charged with the collection and payment of withheld employment taxes may be held accountable for violations. Additionally, the IRS does not confine its investigations to a single person and will bring legal action against anyone it can establish had a hand in the tax infringement.
Payroll processing services are frequently automated by employers who want to reduce their risk of tax penalties while also freeing up more time to concentrate on strategic business initiatives. Payroll companies can help clients with employee wage calculations, tax withholding, and submission to government agencies on their behalf.