• Skip to content
  • Skip to primary sidebar
  • Skip to footer

Long Island Tax Resolution Services

  • Home
  • About
  • Blog
  • Free Consultation
  • Testimonials
  • En Español
  • Representation
  • Notices
  • Wage Garnishment
  • Back Taxes Help
  • Unfiled Returns
  • Levy
  • .
  • .
  • Call us at: 631-244-1650
You are here: Home / IRS TAX PROBLEMS / Payroll and Sales Tax / 7 Important Things about Payroll Taxes for Small Business Owners

September 1, 2014 by James Grennen 1 Comment

7 Important Things about Payroll Taxes for Small Business Owners

As a small business owner, there is so much to remember. Keeping inventory in stock, hiring employees, managing the books, and establishing relationships with clients all demand your attention. While payroll taxes may not be something you spend a large amount of your time focusing on, you shouldn’t ignore them. The IRS takes payroll taxes very seriously, so be sure you understand these seven important things:

Payroll Tax Tips for Small Business Owners

7 Tips for Small Business Owners about Payroll Taxes

  • Crossing State Lines.

     If you own a business with employees in more than one state, payroll taxes become much more complex. That’s because different states have individual rules and regulations regarding how payroll taxes are calculated, handled, and distributed. While it may be advantageous to hire employees in other states, make sure you understand the tax liabilities involved before proceeding. The additional taxes you will be subjected to may or may not outweigh the benefits.

  • Tax Compliance Enforcement.

    While you may run an honest business, slipups can carry stiff penalties. That’s because the IRS has chosen to focus its tax compliance enforcement on small businesses. They crack down on small businesses because they have been identified as the single largest source of uncollected taxes in the country. This is likely a case of a few bad seeds ruining the reputation for everyone else, but still warrants careful treading. Keep this in mind when you want to discount the importance of careful bookkeeping and payroll taxes.

  • Keep Your Hands Off.

    The biggest “no-no” in regards to payroll taxes involves interfering with the funds. Above all else, you must remember to keep your hands off and leave funds alone. It is completely against the law to borrow or use payroll taxes for any purpose. That’s because they don’t technically belong to you. They are a portion of your employees’ paychecks and do not belong to the employer.

  • Constantly Monitor.

    You can’t set up a payroll program or system and expect it to run itself. It’s important to constantly monitor things on a rolling basis and the need for continual evaluation is huge. Tax laws and requirements change frequently, so don’t fall behind on the times.

  • Bonus Checks and Overtime.

    Did you know the timing of bonus checks and overtime payments can have major tax implications? The timing of these payments needs to be correctly aligned with payroll tax due dates. Improper alignment could mean penalties and fines.

  • Stiff Penalties.

    Improper payroll tax deductions can lead to stiff and severe penalties. In fact, not paying payroll taxes can be a federal crime. If your situation is severe enough, you may be referred to the Criminal Investigation Division or Department of Justice.

  • Delinquent Payroll Taxes.

    If you have delinquent payroll taxes, it’s best to deal with the situation swiftly. The best piece of advice is to stay current on all of your present and future payroll tax withholdings. The second piece of advice is to seek professional tax relief help and develop a plan for paying off your debt. Delinquent payroll taxes add up quickly and can be considered a federal crime. To avoid unnecessary penalties, it’s best to cooperate.

Payroll Tax FAQs :

While these seven things are pretty important, you have to start with the basics. Do you have questions regarding basic employer payroll taxes? Here are answers to commonly asked questions:

  • How can I ensure compliance?

    There are hundreds of rules, codes, and regulations regarding payroll and payroll tax withholdings. These often lead to major confusion over rules and compliance. To avoid mistakes, it’s important to educate yourself on common errors, learn about simple ways to follow the rules, and get professional help when necessary.

  • I’m overwhelmed… where can I get help?

    The good news for those overwhelmed by payroll taxes is that there is help waiting around the corner. There are plenty of services, software, and tools to help alleviate the pressure and ensure compliance. While these are helpful, it’s important to keep an eye on these tools from time to time to make sure they are working properly.

  • I have delinquent payroll taxes, am I in trouble?

    The short answer is “not necessarily.” As soon as you find out about delinquent payroll taxes, it’s important to contact professional help. You will want to deal with the IRS honestly and reasonably.

Payroll tax deductions are an important part of running a small business. To remain in the good graces of the IRS, you must make sure you follow all laws and regulations pertaining to your business. The IRS is always looking to crack down on small businesses that disobey their rules; don’t let yours be one of them.

Filed Under: Payroll and Sales Tax

Learn About Us

  • About Us
  • Enrolled Agents
  • Groups and Associations
  • Our Tax Resolution Process
  • Seven Reasons to Hire Us

About James Grennen

James Grennen is a Certified Tax Resolution Specialist who is expert in solving IRS tax problems and New York State tax problems. He has decades of financial tax experience in addition to being an IRS Enrolled Agent.

Reader Interactions

Trackbacks

  1. Trust Fund Penalties and Payroll Taxes for Business Owners says:
    October 2, 2014 at 4:04 am

    […] you are a business owner or individual responsible for collecting payroll taxes, you are almost assuredly aware of the requirement to submit withheld funds to the IRS. While the […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Search Form

DOWNLOAD A FREE COPY OF THE ESSENTIAL TAX RESOLUTION GUIDE

Cover of the Guide

Your information is safe with us.

Attorney Plus Program

Long Island Tax Resolution Services is Not a Law Firm of Attorney Practice


Please click here to see why our Attorney Plus Program is the smartest way to resolve your IRS or State tax problems.

Be Smart Check List

IRS On Enrolled Agents :

"The Enrolled Agent is the most expansive license that the IRS grants a tax professional.

An Enrolled Agent has earned the privilege of representing taxpayers before the IRS.

Enrolled Agents are generally unrestricted as to which taxpayers they can represent, what types of tax matters they can handle and the IRS offices before which they can practice."


IRS Publication 4693A
(A Guide to the Enrolled Agent Program)

Man trapped by tax

NYS Tax Warrants: What Every Taxpayer Needs to Know

Man thinking. New York State Tax Problems FAQ

10 Frequently Asked Questions about New York State Tax Problems

Top 4 NY State Department of Taxation Collection Actions

Top 4 NY State Department of Taxation Collection Actions and What to Do About Them

Offer In Compromise (OIC): Tips To Getting Yours Accepted

The Penalties for Failing to File a Return or Pay Taxes

Footer

LITRS Company Profile

Long Island Tax Resolution Services specializes in providing affordable solutions to both individuals and small businesses experiencing back tax problems. These are either IRS tax problems or State tax problems.

Resources

Our Process

Privacy Policy

Recent Posts

  • NYS Tax Warrants: What Every Taxpayer Needs to Know
  • 10 Frequently Asked Questions about New York State Tax Problems
  • Top 4 NY State Department of Taxation Collection Actions and What to Do About Them
  • Offer In Compromise (OIC): Tips To Getting Yours Accepted
  • The Penalties for Failing to File a Return or Pay Taxes

Tags

Innocent Spouse Relief IRS Back Taxes IRS Bank Levy IRS Hardship irs notices IRS Offer IRS Penalties IRS Plans IRS Tax Relief IRS Tax Services IRS Wage Garnishment Tax Debts Tax Returns

Locations

Head Office (map above)
    80 Orville Drive, Suite 100Bohemia, NY 11716
    Phone: (631) 244-1650
    Fax: (720) 294-1650
Manhattan Location
    5 Penn Plaza, 23rd FloorNew York, NY 10001
2nd Long Island Location
    626 Rexcorp PlazaWest Tower, 6th FloorUniondale, NY 11556
Westchester Location
    50 Main St, 10th FloorWhite Plains, NY 10606

© Copyright 2014 - 2017 Long Island Tax Resolution Services · All Logos & Trademark Belongs To Their Respective Owners·