They say there are two things you can count on in life — death and taxes. When it comes to taxes, it can feel like once you think you have a good understanding, everything changes and you have to learn it all again. But for employers, there is one thing that will...
Employment Tax Law
Personal tax liability and small businesses
Everyone who has ever run a small business knows that it is a risky proposition, but the risk should be to the business, not to the individuals involved. To that end, one of the most important things to consider when forming a business is how to shield the owners from...
Employers face criminal and civil liability for unpaid withholding taxes
Tax laws require employers to withhold income, Social Security and Medicare taxes from employee pay and to remit those taxes to the federal government. Employers who fail to pay withheld taxes to the government face potentially significant penalties. In some cases,...
Tax withholding deferral period extended
To address some of the economic disruption caused by the pandemic last year, collection of the 6.2 percent employee payroll tax was delayed in accordance with a presidential executive action. On Jan. 19, the Internal Revenue Service announced that it extended the...
The IRS’ aggressive pursuit of late or unfiled employment taxes
There are a few seemingly legitimate reasons a business may fall behind on employment tax payments to the IRS. During an economic downturn, for example, maybe depositing withheld employment taxes was not financially feasible. The business may plan to make it up later,...
What are payroll taxes?
Most of us experience, or have experienced, payroll tax withholding but with more recent discussions about the topic, what exactly are payroll taxes? It is helpful for any taxpayer who is seeing their hard-earned dollars withheld every month to understand what payroll...
Impact of COVID-19 on federal payroll taxes
Payroll taxes make up about 2/3 of the IRS' annual revenue. With the COVID-19 pandemic sweeping the globe and unemployment at an all-time high, the IRS is expecting a significant decline in this revenue, meaning after the panic has ended, they will need to replenish...
Filing and paying company withholding taxes
The government requires that all employers file and pay their taxes in a timely manner. This includes making federal tax deposits and filing an annual 940 or 940EZ, filing quarterly 941 forms, filing annual 945 forms, and filing annual W-2 wage and tax statements for...
Failing to stay on top of payroll taxes can get your company into hot water
Understanding payroll tax withholding is crucial for business, not only to ensure the employees are making appropriate contributions, but also to prevent problems with the IRS. As an employer, your company's payroll tax withholding is a legal obligation and it is your...
Do you have to track your employees’ tips?
Let's say you own a string of restaurants in Maryland and adjacent states, and you have hundreds of employees at all of those locations. Many of those employees earn tips as a part of their standard compensation. Obviously, the exact amount earned varies dramatically...