Employment Tax

Business and Employment Tax Liability

Businesses of all sizes have numerous responsibilities. An employer must submit income tax, Medicare tax, Social Security tax and unemployment tax on behalf of its employees. Businesses around the world and the country, including across Maryland, Virginia, and Washington D.C., trust Kundra & Associates to handle their most pressing employment tax issues.

For more information, contact our Rockville law office by calling (301) 424-7585.

Federal Employment Tax

Entity Structure: Employment taxes on the federal level can vary greatly depending on how a business is classified. Based on your industry and goals, and constitution, your formation plays a big part.

Worker Identification: The IRS has also become more aggressive with proper tax identification numbers of your workers. They seek to impose tax on an employer who fails to secure proper social security, employer identification or tax identification numbers. Often the assessment comes first and the opportunity to dispute comes later.

If your business is subject to an investigation or IRS audit, our law firm can help you resolve matters with the appropriate government agencies.  Just as the state and federal governments are getting more aggressive in both assessments and collection tax matters, we provide powerful, strategic representation on your behalf.

State Employment Tax

The States of Maryland and Virginia, as well as the DC Government are tightening up on employment tax issues, particularly with respect to the classification of employees. If a worker should be classified as an employee and not an independent contractor, the business must pay employment taxes on their behalf. It is important to know the difference between the two.

While the federal government has set out a three (3) factor test, your local governments have even stricter rules. Given the current economic climate, state and local governments want to make sure companies are paying. And they have begun audits to ensure that businesses are complying.

If you own a company, you are likely responsible for paying 100% of the state employment taxes not paid by your business. And, if any of your workers are "misclassified" as sub-contractors, you should talk to a tax litigation attorney as soon as possible.

• Have you received a tax lien? Do you have questions about state or federal employment taxes? Please contact a lawyer in our Maryland law office.