If you are a small business owner or the employee of a small business, you may not understand exactly why you are required to pay so many taxes or how federal payroll taxes will benefit you in the long run. If you unclear about federal payroll taxes, then don’t worry. You are not alone. Many people are confused when it comes to payroll tax filing and how to calculate payroll taxes. You can get all the information and assistance you need from a tax attorney. They are there for any payroll tax problem you have, as well as tax help with ongoing payroll tax management.
Understanding Federal Payroll Taxes
Federal payroll taxes are applied directly to your Medicare and Social Security benefits. While you do not see these benefits presently, you will when you reach retirement age or if you become disabled. With each payroll period your employer withholds a certain amount of your income for Social Security and Medicare. They are required by law to make a matching contribution on your behalf. These Social Security payments accumulate for you to draw upon when you retire.
Other federal payroll taxes withheld are used to fund such things as:
- Employer’s Federal Taxes
- Defense Funding
- Military and Law Enforcement
- Foreign Affairs and Community Improvement Development Projects
These payroll payments in turn benefit everyone directly. If you have any tax questions about how to calculate payroll taxes, ask your tax attorney. You should not handle a federal payroll tax problem alone.
How Payroll Taxes Apply to Small Business Subcontract Work
Small businesses that subcontract work are not required to file federal payroll taxes for people who work on an independent basis. That is why some smaller businesses find subcontracting a viable option. But, should the status of the employee ever change, this would require the employer to make payroll and taxation amendments to reflect this change. Your IRS tax attorney can make this transition smoother for you and alleviate any payroll tax problem. If you mistakenly file the wrong federal tax information on an employee, this will create a federal payroll tax problem. Your business will experience dire financial difficulties as a result. Again this is reason enough to enlist the assistance of a qualified tax attorney to circumvent any misunderstandings or problems.
You Must Protect Your Business
If you do not have the means to pay off your federal payroll taxes, this is not something you can ignore. As a business owner you are completely responsible for filing payroll taxes. The IRS takes delinquency seriously . With the margin for misunderstanding and error so high, and the forms and paperwork being difficult to understand, you need the help of a tax attorney to calculate payroll taxes. You want to ensure your business complies with the IRS tax laws and codes. If not, this will result in your business facing financial risk. When you become aware of these payroll issues, you can refer to your tax attorney for federal payroll tax help.
It may seem as though there can be many problems when you own a small business. You can get help with payroll tax filing which allows you to rest easier knowing your business is in compliance. Hiring a tax attorney strengthens the efficiency of your business, ensures your federal payroll taxes are filed in a timely manner, and results in smoother business operations. Having a qualified tax expert on your side should allow you to sleep easier at night.