Miami Payroll Tax Attorney
Payroll taxes are a type of tax that employers withhold from their employees’ paychecks and then remit to the government on their behalf. Failing to fulfill this responsibility can come with severe penalties, making it especially important for those who have questions about their own payroll obligations, to speak with an experienced Miami payroll tax attorney who can ensure that they fulfill their responsibilities and avoid any unnecessary penalties.
What are Payroll Taxes?
Payroll taxes are imposed on employees and typically fall into two categories: deductions from employee wages and taxes paid by the employer. The former, which are also referred to as withholding taxes, must be withheld from employee wages and usually cover advance payment of income taxes, unemployment and disability insurance, and Social Security contributions. The latter, on the other hand, which are paid from the employer’s own funds, are often withdrawn in proportion to employee pay, and are used to cover the employer’s portion of Medicare taxes and insurance.
Depositing Payroll Taxes
Taxes that are withheld from an employee’s paycheck must be deposited with the IRS. How these deposits must be made depends on the type of business in question, as well as the amount withheld. There are, however, two main deposit schedules, which are based on either monthly or semi-weekly payments. Prior to the start of each calendar year, employers must decide which of the two schedules they will be required to use. Employers who violate these withholding and deposit-related rules could be subject to a failure-to-deposit penalty of up to 15 percent.
Reporting Employment Taxes
Besides having to comply with deposit-related tax withholding deadlines and standards, employers must also satisfy a number of reporting requirements. For instance, employers must report all of their employees’ wages, tips, and other compensation by filing Forms 940, 941, and 944. Reporting requirements may also vary depending on the type of tax being withheld. The amount of federal income, Social Security, and Medicare taxes that an employer withholds, for example, must be reported in a quarterly tax return. Employers will also need to complete Form W-2 at the end of every year, which includes an accounting of the wages, tips and other compensation paid to specific employees.
Payroll Tax Violations
Failing to comply with federal withholding deadlines and reporting requirements can come with serious consequences, including fines, the accrual of interest, and even criminal charges. Fortunately, it is possible to avoid these penalties by entering into an agreement with the IRS or correcting an earlier error. Those who mistakenly underpay the IRS as a result of a withholding or deposit-related error, for example, can correct underpayments by completing the proper forms and sending payments by check or credit card as soon as possible.
Call Today for Help with Your Payroll Tax Matters
For help resolving your own Florida payroll tax disputes, please contact dedicated Miami tax attorney Ronald Cutler, P.A. by calling our office at 386-490-9949 or by sending us an online message.