There are a variety of different potential employment tax issues, but don’t worry, there are several Employment Tax issue relief options as well. Here, at Bullseye Tax Relief, we specialize in Employment Tax relief and Payroll Tax relief solutions, so you’ve come to the right place!
In our previous blog posts in the Employment Tax mini-series, we discussed the two different kinds of employment tax and their components. For more information about Employment Tax, which applies to business owners who have 1 or more W2 employees, you can view our previous blog post on the subject, Employment Tax: What is it?. To learn more about Self-Employment Tax, which applies to freelancers, independent contractors, sole proprietors, and some single-member LLCs (depending on the state), check out our second blog post, Employment Tax: What is Self-Employment Tax?.
Common Employment Tax Issues
From missed payments to accounting errors, there are plenty of ways to wind up with employment tax issues. If you or your business are struggling with employment tax issues, you are not the first and you are not alone! Everyone makes mistakes, and that’s why the team of tax relief specialists at Bullseye Tax Relief is happy to help you and your business get back on track.
With that said, let’s look into some of the more common Employment Tax issues.
Failure to Issue the Proper Forms
Whether it’s a IRS Form W-2 for an employee or an IRS Form 1099 for an independent contractor, failure to issue these forms on time will result in penalties. Failing to issue the proper forms starts at $50 per employee (as of 10/18/2020), but increases over time, and can even incur additional fees and penalties if the forms are never sent. These fines, penalties and fees can accrue over time, leaving small businesses with serious employment tax issues.
Failure to Withhold and/or Pay Federal Taxes
As we discussed in the first blog post in the series, Employment Tax: What is it?, employers are required to withhold and match payroll taxes for their employees like federal income, Social Security and Medicare taxes. If an employer fails to pay these taxes that have been withheld to the IRS, they can be in serious trouble. Doing so will incur penalties and fines and in some cases, could even lead to criminal prosecution.
Late Employment Tax Payments
Just like the previous Employment Tax issue, the IRS doesn’t like it when they don’t get their money and they will charge your business fines and fees if payroll tax deposits are paid late. The fines and penalties for this error also increase over time, so it’s important to get a hold of any employment tax issues as soon as possible!
Employment Tax Issue Relief
The team at Bullseye Tax Relief are absolute experts at finding ways to negotiate with the IRS to help you and your business overcome any employment tax issues that might stand in your way. Send us an email or give us a call today to schedule a free consultation and transcript analysis.