Failure To Pay Employment Taxes Penalties

Failure To Pay Employment Taxes Penalties

Failure to​ Pay Employment Taxes – Penalties
As an​ employer,​ you​ must pay employment taxes if​ you​ have employees .​
Fail to​ pay and the​ IRS will rain all over your parade.
If you​ have employees,​ you​ absolutely must deduct and withhold various taxes from the​ paychecks of​ your employees .​
Since you​ are deducting money from the​ employee’s paycheck,​ you​ are handling their funds .​
This fact is​ very important to​ the​ IRS and it​ places great emphasis on​ any failure to​ deposit employment taxes.
If you​ fail to​ pay employment taxes,​ you​ will be subject to​ a​ 100 percent penalty .​
Yes,​ 100 percent .​
Known as​ the​ trust fund recovery penalty,​ the​ penalty is​ assessed against the​ person responsible for paying the​ taxes,​ not the​ entity .​
The person can be the​ owner,​ corporate officer or​ other responsible person .​
In short,​ a​ business entity is​ not going to​ protect you​ from the​ wrath of​ the​ IRS.
Late Payments
Cash flow crunches are an​ inevitable event for practically every business .​
So,​ what happens if​ you​ make a​ late payment for employment taxes .​
Unless you​ can show a​ reasonable reason for the​ delay,​ the​ IRS is​ going to​ penalize you.
Late payment penalties range in​ amount depending on​ the​ delay .​
If the​ delay is​ less than six days,​ the​ penalty is​ two percent .​
Delay for six to​ 15 days and you​ are looking at​ five percent .​
More than 15 days in​ delay is​ going to​ push the​ penalty to​ 15 percent .​
If you​ delay this long,​ the​ IRS will be peppering you​ with penalty notices telling you​ where you​ stand.
In Closing
Whatever you​ do,​ make sure you​ deposit employment taxes with the​ IRS in​ a​ timely fashion .​
Take a​ moment to​ think about the​ worst thing you​ have ever heard done by the​ IRS .​
If you​ fail to​ pay employment taxes,​ the​ actions taken by the​ IRS will be ten times worse and you​ will be the​ one telling horror stories.

Related Articles:

Related Topics:

Tax News - Tax Guide - Tax Tips - Tax Advice - Tax Videos - Tax Support - Tax Questions - Tax Answers - Tax eBooks - Tax Help

Powered by Blogger.