Call 520-526-9850 for a FREE CONSULTATION


When it comes to income, there are dozens of little things and elements that can reduce the amount of money you’ll ultimately earn. In most situations, these fines and income-reducing elements are part of your payroll taxes.

What Are Payroll Taxes?

Payroll taxes are taxes paid on the wages and salaries of employees. These taxes are used to finance social insurance programs, such as Social Security and Medicare. When it comes to payroll and income, most people just know that they’re going to end up with less income, but they don’t look further into understanding just how their money will be reduced. Here at Guardian Tax Law, we’re here to help clear up the mystery while also working towards helping you if you’ve been a victim of unfair payroll taxes that have led you to be labeled “delinquent” with these taxes.

Why Are Delinquent Taxes A Problem?

When it comes to tax-related issues, one of the worst ones is delinquent payroll taxes. If you end up being labeled “delinquent” with these taxes, it can end very poorly for you and can land you with serious federal charges and IRS penalties. Because these types are more serious than other tax inaccuracies and mistakes, the IRS labels delinquent payroll taxes as much higher-priority crimes than others.

What To Do?

Don’t let this be you! Don’t let yourself be labeled “delinquent” when it comes to payroll taxes. However, life happens, and you may have already been labeled as such. If this happens, it’s important to get expert help quickly so that you can be helped with your unpaid taxes. You don’t want to be charged with additional fees or penalties for making a mistake, so try to get this situation fixed as quickly as possible. Every business understands that payroll taxes are already a nightmare, one that gets worse when back payroll taxes are involved.

Payroll Tax Rules

Knowing and understanding some of the basic rules of payroll taxes will go a long way towards making sure that you don’t end up having to pay fines. Keep in mind that:
  • All employers are required to withhold income tax, Social Security tax, and Medicare tax from employees’ pay and report and submit these amounts to the IRS.
  • Employers must also match the Social Security and Medicare taxes that were withheld and pay these sums to the IRS.
  • The IRS assesses monetary penalties ranging from 2% to 100% of the unpaid tax when employers willfully disregard these requirements, depending on the type of tax.
  • Penalties can be charged even if you’re simply late with submitting payments.

How Do Unpaid Payroll Tax Penalties Work?

As mentioned above, when it comes to payroll taxes, you’re required to match the Social Security and Medicare taxes that are withheld from your employee’s paychecks. This means that you will typically have to pay about the same amount of money per month to match an employee’s income. Here’s where it gets tricky and where you might find yourself making mistakes. Let’s say you’re required to make a deposit of $1,500 every month for Employee A, but you accidentally miss it. So, you’ve not made your March 15 deposit, but as soon as you remember, you deposit $2,000 on April 15 to catch up. Of that payment, $1,500 is applied to April 15 and $500 to March 15 – this means that you might end up being penalized for not paying the remaining $1000 for March! You can also be penalized for unpaid payroll taxes if you misclassify employees as independent contractors. You don’t have to withhold income taxes or FICA taxes from payments made to independent contractors, but you could face penalties if the IRS finds that they were misclassified and should have been paid as employees because they haven’t met the qualifying rules for independent contractors. Although the IRS is willing to work with you on certain mistakes so that you’re not going bankrupt to fix your mistakes, they are a government body, and it’s unlikely they’ll be able to be so understanding if this is a consistent issue you have. Having said that, we at Guardian Tax Law are here to help you with the ins and outs of dealing with the IRSContact us today to see how we can help you with your specific situation. Guardian Tax Law

Leave a Reply

Your email address will not be published. Required fields are marked *

Payroll Taxes

Do you need help figuring out what your business owes, when, and how to pay your payroll taxes?

You are not alone!! The payroll tax system is complicated and most small business owners need help!!

Delinquent Payroll Taxes:

Delinquent payroll taxes can be one of the most serious tax related issues out there, leading to serious federal charges along with IRS penalties. It’s much more serious than income tax, and employment taxes are always given a higher priority by the IRS and their collections/enforcement departments. As a result, getting expert help quickly and taking care of any payroll related tax debt is a must. Failure to do so could lead to dire consequences for yourself and for your company.

Every business owner with employees knows what a nightmare payroll taxes can be. If your business owes back payroll taxes you should seek help immediately! Let our income tax attorneys guide you to resolution.

We know the “ins-and-outs” about payroll taxes, and we can help to resolve your IRS payroll tax matters.

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 Internal Revenue Service as “Federal Payroll Tax Deposits.” These payroll taxes include the Social Security, Medicare, and Federal Income taxes.

Employers are also required to file certain payroll tax forms with the IRS, namely a Form 941, Employer’s Quarterly Federal Tax Return and a Form 940, the Employer’s Annual Federal Unemployment or FUTA Tax Return. There are similar State Department of Revenue deposits and quarterly filings that are required as well.

If an employer fails to do any of the above — that is, fail to pay its federal payroll taxes and withholdings or to timely file the required Form 941 and 940, they are exposing themself to serious IRS tax issues.

In some cases, the IRS will even try to collect the tax from the employer personally. The IRS will can also conduct investigations and audits to determine if there are other “responsible parties” from whom to collect the tax — personally!!

The IRS is not shy about “shutting-down” a business that continues to have payroll tax issues.

Whether you’re “in business” or “out of business” we can help!! We have successfully guided employers and business owners through the payroll tax maze, and helped them deal with their unpaid payroll taxes – whether for the open business or personal assessments against individuals!

Book Your Free Consultation