Tampa Payroll Tax Attorney
If you own a business in the Tampa Bay area, you likely know that you are required to deposit certain taxes and to report certain taxes if you have employees, including federal income tax, social security taxes, Medicare taxes, and Federal Unemployment (FUTA) tax. The IRS requires business owners to understand their employment tax obligations, including deposit and reporting requirements concerning workers who are classified as employees or independent contractors. Taxes that you withhold from employees, including social security taxes, must be properly withheld and deposited. These are known as “payroll taxes.” If you fail to appropriately withhold or deposit payroll taxes, you can face serious penalties from the IRS.
Whether you need assistance withholding and depositing payroll taxes, or you have a payroll tax dispute or problem, you should get in touch with a Tampa payroll tax attorney as soon as you can to obtain legal advice from an experienced tax lawyer about your situation.
What Do You Need to Know About Payroll Taxes in Tampa, Florida?
Businesses must withhold certain taxes from employee paychecks, and those taxes must be deposited appropriately and in a timely manner with the IRS. There are many different ways that a business can make errors when it comes to payroll tax withholdings or deposits, and that business can end up owing significant penalties and interest.
Disputes and Payroll Tax Violations in Tampa
One common type of situation in which payroll tax violations arise is when a business misclassifies a worker. All workers are classified for taxation purposes as either employees or independent contractors. Business owners must withhold and deposit taxes from employees’ paychecks, but they are not required to withhold from the paychecks of independent contractors (who are self-employed for federal and state tax purposes). To determine whether a worker is an employee or an independent contractor, the employer needs to consider the degree of control it has over the worker, and the degree of the worker’s independence. There is no hardline rule, but the following three categories help to determine whether a worker is an employee or an independent contractor:
- Behavioral control (e.g., whether the employer has control over what, when, and how the worker performs his or her work);
- Financial control (e.g., whether the employer reimburses the worker for expenses, whether the employer provides tools of the trade or supplies for performing the work); and
- Type of relationship (e.g., whether there are written contracts between the employer and worker, whether the worker has benefits from the employer, whether the worker performs a key part of the business).
Businesses can also run into payroll tax violation problems when they avoid making deposits in order to pay business bills or expenses when the business is struggling financially. It is extremely important to properly withhold and deposit payroll taxes to avoid penalties.
Contact a Tampa Payroll Tax Lawyer
If you have questions about your payroll tax obligations, or if you are facing a payroll tax dispute or violation, it is critical to work with one of our experienced Tampa payroll tax lawyers. Do not hesitate to get in touch with one of the tax attorneys at our firm. Contact Ronald Cutler, P.A. to learn more about how we can assist you.