As a business owner, are all your payroll tax obligations being met? Are you delinquent in paying these quarterly taxes? Instant Tax Solutions (ITS) can take control your tax problems, expediting them to resolution.
“Payroll Tax” refers to two types of taxes business owners must pay:
- Withholding Taxes – Employers are required by law to withhold a certain portion of an employee’s income and match some of these contribution as well. The income is withheld to pay for a variety of things such as federal income taxes, Social Security, and Medicare taxes. In many states the employer must also withhold city and state tax amounts from the employee’s paycheck.
- Pay-As-You-Go (PAYG) or Pay-As-You-Earn (PAYE) Taxes – PAYG and PAYE payroll taxes are a business expense paid by the employer. They are directly related to the costs of employing an hourly or salaried worker.
Our team at ITS is experienced in tax law. You need a qualified legal counsel to help you resolve your tax debt now and protect your financial future.
What is FICA?
The Federal Insurance Contributions Act (FICA) is also known as Social Security and Medicare tax. The employee must pay this tax in every paycheck, and the employer must provide an equal amount. Failure to submit your company’s quarterly federal payroll taxes will bring aggressive action from the IRS, threatening the possible loss of your business. ITS tax experts are experienced in IRS negotiations. Without a skilled tax professional working on your behalf, you can miss the opportunities available to you.
Every employer must also pay both state and federal taxes for Unemployment Benefits on each employee. These are respectively known as the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). These taxes protect the employee in the event they lose their job, enabling them to draw unemployment income.
Understanding Forms and Paperwork
It is extremely important for an employer to keep accurate, updated payroll information. If any of this information is incorrect, it can result in payroll errors and serious problems with the IRS. Instant Tax Solutions can help you with these requirements.
Delaying payroll tax debt repayment will only result in escalating penalties and fines. It is imperative that you have a competent tax professional on your side.