100+ Years of Combined Tax Resolution Experience.
Payroll taxes affect every business, small or large. If you own a business and you need help with payroll tax representation, don’t wait any longer! When a business owes back payroll taxes the Internal Revenue Service can shut the business down and attach the back taxes to you personally (known as a trust fund penalty). Call us today at 844-841-9857 or click the button below to fill out the form to schedule your free consultation!
There’s no need to feel embarrassed or ashamed if your business needs payroll tax representation. Tax law is confusing and difficult! Polston Tax has over 100 years of combined tax experience nationwide to help you with your taxes and accountants dedicated to keeping our business clients compliant on their payroll taxes.
Withheld payroll taxes are frequently referred to as “trust fund taxes” due to how the employer holds the employees’ money in a trust until a federal tax deposit is made. When your business fails to withhold the appropriate amount of taxes, you can be penalized regardless of the form of your business entity. If the amount of taxes you owe exceeds $100,000, the IRS may assign a Revenue Officer to your case.
For the trust fund recovery penalty to apply, your business must meet two conditions:
When you partner with Polston Tax, we’ll help you reach a reasonable agreement with your Internal Revenue Officer and get your delinquent taxes sorted out in the shortest time possible. We specialize in designing action plans for businesses no matter your budget or the complexity of your case.
All employers are required to withhold and match certain taxes from their employee’s paychecks or wages and are required to send them to the IRS. Payroll taxes are withheld on behalf of your employees and then remitted to local, state and federal authorities. Payroll taxes include the following:
Employers are also required to file certain payroll tax forms with the IRS, such as a Form 941, Employer’s Quarterly Federal Tax Return, and a Form 940, Employer’s Annual Federal Unemployment or FUTA Tax Return.
When employers fail to file these tax returns and pay money for the taxes due, the Internal Revenue Service won’t be shy about getting the money. If a business owes back payroll taxes, they will most likely have a local Revenue Officer assigned to investigate the business and the officers of the business, take an inventory of the business assets, complete a trust fund interview to determine personal responsibility attributed to officers, and make a determination if the assets of the business should be seized, or if the business should be shut down. Revenue Officers can take very aggressive tactics and often contact the customers of a business to issue notices of levy that the business owes taxes.
Payroll tax withholdings are calculated using two methods — wage bracket methods and percentage methods. The wage bracket method is the easiest way to calculate your payroll taxes.
The wage bracket method is calculated using IRS Publication 15-A in “Wage Bracket Percentage Method Tables.” These tables are set up in accordance with employee pay periods and then checked into a W-4 form. An employee’s status as single or married directly impacts the number of allowances they can claim.
After you’ve determined the gross wage for your pay period in columns A and B in the 15-A form, subtract the amount from Column C and multiply your results by the percentage in Column D. Employees can also request additional tax withheld from each paycheck. The final sum is the amount you should withhold from your employee’s paycheck for their pay period.
The percentage method is recommended for large businesses and is typically more complicated than the wage bracket method. To find the right tax withholdings using the percentage method, you must determine how much FICA (Social Security and Medicaid) tax is due.
FICA taxes are paid using 50% of your employee’s paycheck and 50% of your business’s own revenue. It is your duty as an employer to remit your employees’ FICA from their paychecks. FICA tax rates are currently at 12.4%, half of which is paid by the employer and half of which is paid by the employee. Medicare is similarly split with a 2.9% current rate that is halved between you and the employee.
Polston Tax has extensive experience providing tax relief to businesses with unique challenges and situations. At Polston Tax, we set ourselves apart with the following benefits:
If you shut your business down but still owe payroll taxes, there is still hope! There are always options. Let us help you today!
To keep a small business running smoothly, you need a tax professional. They not only make sure you remain compliant with all tax regulations, but they are also a valuable resource when business owners become entangled with problems. When operating a small business, payroll is one of the largest operating costs and one of the biggest...
If you and the Internal Revenue Service (IRS) disagree on an outcome or decision involving your tax matter, you can legally appeal their decision. IRS tax appeals allow you to state your case to the IRS appeal division for another evaluation. Whether you need to dispute a tax penalty, assessment or other decision from the...
One of the keys to business success is understanding the tax rules and how they apply to or affect your company. In states where marijuana is legal for medical or recreational use, there are usually special taxes that apply to the sale of the drug. If you’re considering opening a dispensary or own one already,...
The landscape of cannabis taxation is as dynamic as the changing tides of its legal status across various jurisdictions. Entrepreneurs and consumers alike must navigate a complex maze of federal and state tax regulations that often clash or overlap, especially as more states join the roster of cannabis-legal states. Businesses entrenched in the burgeoning industry...
As the fiscal year draws to a close, taxpayers might observe a shift in their strategies by assessing the updated landscape of tax brackets for 2023. With the guidance of Polston Tax’s experienced advisors, individuals, and businesses can navigate the system’s complexities, ensuring a path to financial efficiency and potential savings. Tailored tactics can cater...
Sales tax can be a daunting topic for any business owner, especially if your organization sells across state lines. Knowing the ins and outs of sales tax law is essential for staying compliant and avoiding fines, and it can help you set up your business to meet the requirements of different states, including sunny Florida....