Employment Tax Forms with a Calculator on it

Being a business owner with employees carries important responsibilities. As an employer, you must withhold certain taxes from the paychecks of your employees . Employment taxes include:

  • Federal income tax withholding
  • Social Security and Medicare taxes
  • Federal unemployment taxes (FUTA)

As of January 1, 2011, taxpayers are required to deposit all payroll taxes electronically using the Electronic Federal Tax Payment System (EFTPS). There are two deposit schedules, monthly and semi-weekly, for determining when you deposit social security, Medicare, and withheld income taxes. These schedules tell you when a deposit is due after a tax liability arises (for example, when you have a payday). Before the beginning of each calendar year, you must determine which of the deposit schedules you are required to use.

Owing back payroll taxes will prompt harsh and aggressive collection action on the part of the IRS. Part of this collection action is the assessment of a penalty that will act to double your initial payroll tax debt. This will occur if you fail to make timely trust fund deposits.

In addition to the potentially dire financial consequences to your business, a back payroll tax liability can allow the IRS to make you personally responsible for the payment of the tax debt. If the IRS concludes that the business does not have the financial wherewithal to pay the tax debt, they will shift their attention to any individual or group of individuals who has the duty to perform and the power to direct the collection, accounting, and payment of the payroll taxes.

If you are facing an IRS problem due to the nonpayment of payroll taxes, then contact Tax Muscle for immediate help. Our tax experts can structure an installment agreement for the back payroll taxes you owe, and negotiate with the IRS to prevent any hostile collection actions, such as federal tax liens, levies, or the assessment of the Trust Fund Recovery Penalty.

Every Taxpayer Has A Right To Tax Representation

If you have been contacted by the IRS or State Taxing Agency, or are facing enforced collection action or the threat of such action, then let Tax Muscle do the heavy lifting and resolve your tax problem for good. Call 855.829.6875 today for your free 15 minute tax debt consultation.