Tax Attorney: Payroll Tax Problem – What You Need to Know

As an employer, it is your responsibility to ensure that your employees are paid correctly, and on time. However, just to add to the stress and tribulations of being a business owner, you will also be responsible for dealing with employment payroll taxes, and payroll tax problem issues. These expenses can accumulate and they can actually make life way harder than it needs to be. Payroll 941/940 employment issues for example, can arise at any time, and will need to be rectified as soon as possible. This is where it pays to hire a professional tax attorney to handle these issues for you, but we’ll have more on that a little later on. For now, we’re going to look at some of the most common payroll tax problem issues that business owners are likely to encounter, and a few other useful pieces of advice based upon all things payroll tax-related. 

Common payroll tax problems – even the odds with a tax attorney

In this first section, we’re going to take a look at some of the main issues plaguing business owners up and down the country when it comes to payroll employment 941 tax problems. We all make mistakes from time to time, and it is this that makes us human and sets us apart from computers and computer software. Business owners are certainly not immune from making errors, especially when numbers aren’t their strongpoint. Tax season for a business owner can be a time-consuming and stressful time of year, though in reality, payroll/employment 941 tax issues could arise at any time. Here’s a look at some of the most common 941 payroll tax problem issues affecting business owners: 

Failing to issue IRS form 1099 – The first common error we’re going to look at today, is failing to issue IRS form 1099. If your business utilizes outside subcontractors or companies, you need to ensure that you issue IRS form 1099. If you pay them $600 or more in a calendar year, you must ensure that you issue them with this form and forward copies of said form to the IRS. Now, you might be wondering what will happen if you don’t? Basically, for every 1099 IRS Form that you do not issue, you will have to pay a $75 penalty. On top of that, you could also be forced to pay up to 31% of the amount which was issued in federal taxes.  Get represented by a tax lawyer today.

Failing to pay and withhold federal taxes – This is a fundamental rule of being a business owner, and taxpayer in general, yet you’d be shocked by the amount of people that think they can beat the system and save money. Every employer in the US is required to withhold federal income taxes, as well as employee wages, salaries, and Medicare taxes. If you fail to do so, the IRS may require you to pay taxes on top of income paid to your employees, as well as any penalties and fines. Withholding federal taxes and failing to pay them to the IRS is the worst thing you could do. Not only will it cost you money, it could also result in you facing criminal charges and even potentially facing time behind bars. Yes, when it comes to common 941 employment payroll tax problem issues, this is about the worst thing you could do. 

Paying payroll tax deposits and payments late – If you make your 940/941 IRS payroll tax payments and deposits late, the IRS will likely penalize you and charge you even more. If you make these payments considerably later than they should be made, you could potentially face a 25% penalty. In most cases, though, late payments and deposits will result in a 0.5% charge. After withholding taxes from the paychecks of your employees, tax deposits must be made on the 15th day of each month, without fail. 

Why seek professional tax attorney help?

As you can see, if you make mistakes when it comes to payroll taxes, deliberate or otherwise, you will face the wrath of the IRS. In order to resolve these payroll tax problem issues, or better yet, in order to prevent them entirely, you should hire a professional tax attorney. But what are the main benefits? Here’s a more detailed look: 

Peace of mind – One of the best things about professional tax lawyers is the fact that hiring them will give you peace of mind. Attorneys can handle all of your tax issues for you and can do the vast majority of the work for you. Best of all is the fact that you can rest easy, safe in the knowledge that your payroll tax, also known as payroll 941 tax issues, will be handled in a timely and efficient manner. 

Save time – As a business owner, your job is to run your business, whatever it may be. You are not an accountant/bookkeeper/tax professional and as a result you likely won’t be the most efficient when it comes to your taxes, payroll or otherwise. Business owners spend countless hours each month taking care of various tax issues such as payroll tax problem issues, when they should be working and running their business. If you hire a professional tax attorney, though, they can essentially do the heavy lifting for you. This means that you can focus on your business and leave the payroll tax problem issues to the professionals. 

Learn as you go – One reason why some business owners are hesitant to hire a tax lawyer is because of the fact that they’re reluctant to pay them. Hiring a professional tax attorney, though, is an investment. Hiring them means that you learn as you go as they can teach you the basics and all of the essentials for the future. In the long run, this can only be seen as a good thing. 

Get a free and brief case evaluation today 1-800-605-8566.

Mike Habib

Mike Habib

Mike Habib has over 20 years experience in taxation and financial advisory to individuals, small businesses and fortune 500 companies.