Tips for Preventing Payroll Tax Debts Businesses that have employees must pay the employees taxes. Nonetheless, many Owners, Officers, employees and others who are responsible for determining the Financial resources of a business at times fail to pay. At times, the financial condition of a company may not allow for payment of payroll taxes on time. Yet, there are monetary consequences for not doing so. These consequences For Internal Revenue Service federal payroll tax penalties are as follows: 1) Failure to pay penalty: 2) Failure to Deposit penalty 3) Failure to file penalty 4) Assessed Interest 5) Accrued penalty and interest Add all the potential penalties for not complying with payroll tax payments and your Company and even your personal financial future can be in jeopardy very quickly. It does not pay to utilize payroll tax funds for payment of other business or personal debts. Not only will the Internal Revenue Service take immediate enforcement action. The State Employment Tax Authorities will also enforce actions. Therefore, here are the tips recommended to prevent payroll tax debts: 1) Pay all the payroll tax deposit timely. 2) File all employment tax returns on time to avoid the failure to file penalty. 3) Pay only necessary business expenses: Rent/lease payments, utilities, payroll, supplies Inventory required, 4) Postpone expenses to unsecured debt. Examples, credit card payments, personal loans, 5) Factor receivables to secure money for payment of payroll tax debts when money is a problem. 6) To reduce tax debt and Not all businesses have similar financial situations or goals. For this reason, there is no Magic bullet or one size fits all in any tax consulting or tip suggested. When time is of the essence in negotiating with tax agencies, it is best to consult with a tax professional that has the training, knowledge and experience in representing clients with payroll Tax issues. Written by: Martha De la chaussee Tax Resolution Expert
Posted on: Sun, 26 Jan 2014 04:23:57 +0000
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