Payroll Tax Problems

Payroll Tax Problems

The Internal Revenue Service (IRS) is a very aggressive division of the United States federal government. One area that the IRS aggressively pursues is the collection of past due payroll taxes. The penalties assessed on delinquent payroll tax deposits or tax return filings can dramatically increase the total amount owed. It’s important to budget for your share of the payroll taxes. All employers are responsible for a share of unemployment, Social Security and Medicare taxes. The total amount to pay varies greatly depending on factors such as what salaries are paid, an employee’s date of hire, and a company’s unemployment insurance account balance.

It is recommended that business owners set aside at least approximately 13 percent on top of gross payroll to cover payroll taxes in order to avoid facing payroll tax problems.

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