Payroll Tax Problems to Avoid
When you’re handling payroll taxes, you really can’t be too careful. For while a personal tax issue can be troublesome, neglecting employer payroll taxes can be truly criminal. Your first priority may be to avoid a penalty from mistakes with IRS payroll tax, and this is certainly important. There are several aspects to your responsibility, though, that warrant consideration.
How do payroll taxes impact you and your business? Poorly managing your duties can lead to more than payroll tax penalties. The extra expense you incur can mean trouble for your business itself. If you’re already in a bind and find yourself seeking payroll tax debt relief, there are some options which may be essential to your entrepreneurial survival.
The Importance of IRS Payroll Taxes
As critical as it is that you withhold taxes from your employees’ wages, it’s equally urgent that you ensure payroll tax deposits are made in a timely fashion (if you find yourself asking, “When are payroll tax deposits due?” it is advisable to consult with an accountant). Failing to pay payroll taxes can lead to serious IRS problems.
When payroll tax deposits are not made after you’ve withheld the necessary amount, the IRS can view this not only as evasion, but theft as well. Make no mistake, payroll tax problems can lead to more than a penalty or interest; neglecting your responsibility can lead to legal action. Fortunately, payroll problems don’t have to spell doom for you or your business.
More than a Payroll Tax Penalty
As you want to avoid more than a punitive charge for mishandling payroll tasks, you owe it to yourself to do everything in your power to correct an existing issue. Delinquent payroll taxes can be addressed by a licensed tax professional, who will review your payment history in detail. He or she will then propose and execute a solution for you to ensure that your issue is concluded appropriately.
Like any other tax problem you might face, payroll tax issues may best be left to a licensed tax professional. Since you can’t afford to make mistakes, you may want to consult with a tax pro sooner rather than later. This can ensure you don’t end up with a liability that will sink your business.
The Payroll Tax Debt
Even if you avoid criminal prosecution for neglecting payroll taxes, the ultimate cost may be more than you can afford. Consider for a moment that tax penalty that you were initially concerned with. A payroll tax debt can result in mounting interest and penalties, which can overwhelm even a sturdy financial structure.
Consult with a licensed tax professional before your tax debt becomes bigger than your business. There’s simply no sense in allowing all of your hard work to be thrown away by mishandling a completely controllable tax concern. You have the power to resolve any payroll tax issue before an irreversible IRS issue drags you down.