Payroll Tax Relief Solutions To Unlock For Maximum Benefits
IRS Payroll Tax Forgiveness
IRS Payroll Tax Relief Can Be Negotiated In A Way To Help Businesses That Owe Payroll Taxes.
Employers must pay payroll taxes on the wages and salaries they give their employees. These taxes are used to fund government programs such as Social Security, Medicare, unemployment insurance, and other programs. Employers are responsible for withholding payroll taxes from their employees' paychecks and depositing them with the government on a regular basis. The amount of payroll taxes withheld from an employee's paycheck depends on several factors, including their income level and the type of tax being withheld. In the United States, there are several types of payroll taxes, including:
Thank you for reading this post, don't forget to subscribe!Social Security Tax
This tax funds the Social Security program, which provides retirement, disability, and survivor benefits to eligible individuals.
Medicare Tax
This tax funds the Medicare program, which provides healthcare benefits to eligible individuals.
Federal Income Tax
This tax is withheld from an employee's paycheck and used to fund the federal government.
State Income Tax
Some states require employers to withhold state income tax from their employees' paychecks.
Get Virtual Tax Relief
Employment Taxes And The Trust Fund Recovery Penalty (TFRP)
Employment taxes are taxes that employers are required to withhold and pay on behalf of their employees. These include federal income tax withholding, Social Security and Medicare taxes, and federal unemployment tax. Employers are responsible for depositing these withheld taxes timely and accurately with the IRS.
The Trust Fund Recovery Penalty (TFRP) is a penalty that the IRS may assess against individuals who are responsible for withholding, accounting for, depositing, or paying specified employment taxes and willfully fail to do so. This penalty is equal to the full amount of the unpaid trust fund tax. The "trust fund" refers to the taxes withheld from an employee's wages (income tax, Social Security, and Medicare taxes) that an employer holds in trust until paid to the Treasury.
The TFRP may be assessed against any person who is responsible for collecting or paying withheld income and employment taxes, or who is required to collect, truthfully account for, and pay over such taxes, and acts willfully in not doing so. This can include a corporate officer, director, shareholder, employee, or any other person or entity that is responsible for managing the funds of the business.
To avoid the TFRP, it is important for businesses to accurately withhold and timely deposit all employment taxes. If a business is having difficulty making the required deposits, it should contact the IRS immediately to discuss available options.
Business Owners Or “Responsible Person” And Trust Fund Recovery Penalties
Are You Behind In Your Payroll Filings Or Payments And Have Payroll Debt?
You have a good business, but sometimes your cash flow gets a little low and the payroll deposit doesn’t get made on time. Or maybe you just got busy and missed your quarterly payroll return filings. Whatever the reason, you’re now behind in your payroll tax filings or payments or both.
You might feel like you’re temporarily borrowing the money from the IRS until your business gets back on track, but the IRS doesn’t see it that way at all. The IRS needs that money to make Social Security payments among other things and takes late payroll payments more seriously than just about any other tax problem.
Employment Taxes And The Trust Fund Recovery Penalty (TFRP)
- You miss a payment deadline for payroll taxes due.
- You miss a deadline for filing payroll tax reports.
- An amount paid is short or over what the IRS or another tax agency calculates as due.
- The agency notices a discrepancy on your payroll tax returns and needs an explanation.
- You have been selected for an audit.
- You fail to respond to previous correspondence.
- Respond professionally to IRS correspondence
- Get you caught up on filing back tax returns that are late
- Understand the IRS Collections process and your rights
- Negotiate penalties, interest, and taxes due to lower your debt
- Work out a payment plan on any money you owe to the IRS
- Fight for you on issues that come up, such as a “responsible persons” situation
Responsible Person
If you worked for a company that did not file their payroll tax returns or pays their payroll taxes on time, the IRS may have designated you as a “responsible person.” Do NOT ignore this correspondence!
The IRS aggressively goes after anyone they can when it comes to payroll taxes, even if you’re not the owner of the business. If you have a relationship with a business that is of a particular status, duty, and authority, the IRS can blame you for not paying payroll taxes. And in this case, you are guilty before proven innocent.
It's best to contact a tax representation professional who can argue your case and get your “responsible person” status dropped.
Solutions for Your Payroll Tax Challenges
Contact us at no obligation to you so we can understand your specific payroll tax situation and provide advice on the options available to you. Your tax issue is handled with the utmost confidentiality and privacy.
Understanding Payroll Tax Debt Relief
Payroll taxes are a type of tax imposed on employers. The amount that needs to be paid comes from a percentage of the salaries. There are two types of taxes: one is being paid by the employer based on the employee’s wages and the other is directly deducted from an employee’s wages.
Debt accumulation occurs when the taxes are not paid. Even if one is forced to close his or her business, the party is still liable for their outstanding taxes. In this case, the affected party should seek professional assistance to determine the best course of action to resolve the tax debt problem – payroll tax debt relief.