Payroll Tax Representation
Payroll taxes refer to the Social Security tax and the Medicare tax. Social Security taxes are designed to provide benefits for retired workers, the disabled, and the dependents of both. Medicare taxes are designed to provide medical benefits for certain individuals when they reach age 65. Federal income taxes, compared to payroll taxes, are used to pay for national programs such as national defense, community development, and law enforcement.
Employers commonly refer to these taxes as “payroll taxes.” An employer could be a self-employed individual, a partnership with employees or a corporation with employees. Employers are required to withhold these payroll taxes from the wages earned by their employees and are required to forward these withholdings to the IRS. Under the Internal Revenue Code, an employer is required to collect, account for and pay taxes that have been withheld from employees’ wages. An employer is required to withhold Federal Income tax, Social Security tax and contribute a portion of Social Security tax as well. These withholdings must then be deposited at a bank for transfer to the IRS. Additionally, if the business has employees with an active payroll, the business is required to file quarterly a Form 941, Employer’s Quarterly Federal Tax Return, and annually a Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.
Failing to properly file and pay payroll taxes is a serious matter. If the employer fails to timely file and pay payroll taxes, the IRS is authorized to collect these taxes from the business or even a person or persons who are responsible for withholding and paying these payroll taxes to the IRS. The IRS typically employees Revenue Officers to work on collecting payroll taxes and to investigate the financial health of the business. Failure to correct a delinquent payroll tax matter could result in the closure of the business and liquidation of the business assets.
Roni Lynn Deutch, a Professional Tax Corporation represents taxpayers with payroll liabilities as the result of a closed business or for a business currently open. We help business owners understand and follow payroll tax obligations. Clients are provided detailed information regarding IRS requirements and regulations for employers. Our firm acts as a liaison between the client and the IRS. Once a business owner is in compliance with payroll tax regulations, we assist the client in reaching a resolution for the past due payroll tax liability and help the business remain compliant with IRS tax regulations.
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