Running a business comes with countless responsibilities, and payroll taxes are among the most important—and stressful—tasks. Falling behind or making errors can lead to serious consequences, including penalties, interest, and even personal liability. Here’s what you need to know about payroll tax issues and how to address them effectively.

What Are Payroll Taxes?

Payroll taxes are the federal, state, and local taxes employers must withhold from employees’ wages and remit to the appropriate authorities. These include:

• Social Security and Medicare taxes (FICA)
• Federal income tax withholding
• State income tax withholding (if applicable)

Employers are also responsible for paying their share of FICA taxes and unemployment taxes.

Common Payroll Tax Issues

1. Missed Payments
   Failing to deposit payroll taxes on time can trigger severe penalties. Even a short delay can result in fines, making it crucial to stay on schedule.

2. Improper Withholding
   Withholding too little from employees’ paychecks can leave them owing taxes—and the IRS will hold you accountable for any shortfalls.

3. Misclassifying Employees
   Treating employees as independent contractors to avoid payroll taxes is a common mistake that can result in significant fines if discovered.

4. Trust Fund Recovery Penalty (TFRP)
   If payroll taxes go unpaid, the IRS may impose the TFRP, holding business owners or other responsible parties personally liable for the missing funds.

Steps to Resolve Payroll Tax Problems

1. Identify the Problem
   Review your payroll records to determine the source of the issue. Is it a missed deposit? A calculation error? Misclassification?

2. Contact the IRS
   If you’ve fallen behind, don’t ignore the problem. Proactively reaching out to the IRS can sometimes prevent further penalties.

3. Create a Payment Plan
   The IRS may allow you to pay overdue taxes through an installment agreement, easing the financial burden.

4. Seek Professional Guidance
   Handling payroll tax issues on your own can be overwhelming. A tax resolution expert can help you address the problem and avoid further complications.

The Risks of Ignoring Payroll Tax Problems

The IRS takes payroll tax compliance very seriously. Failing to resolve issues promptly can result in:

• Liens or levies on business assets
• Damage to your business’s reputation
• Personal liability for business owners or other responsible parties

Don’t Wait to Take Action

At Accelerated Tax Resolution, we understand how payroll tax problems can disrupt your business and your peace of mind. Whether you’ve fallen behind on payments or are facing IRS penalties, our experienced team can help you navigate the complexities and find a solution that works for you.

Call us today for a free consultation! Let us help you protect your business and get back on track.