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As an employer, you should pay employment taxes if you have staff. Fail to spend and the IRS will rain all over your parade.

Penalties

If you have workers, you absolutely ought to deduct and withhold different taxes from the paychecks of your workers. Given that you are deducting cash from the workers paycheck, you are handling their funds. This truth is very crucial to the IRS and it places wonderful emphasis on any failure to deposit employment taxes.

If you fail to spend employment taxes, you will be subject to a 100 percent penalty. Yes, one hundred percent. Recognized as the trust fund recovery penalty, the penalty is assessed against the particular person responsible for paying the taxes, not the entity. The individual can be the owner, corporate officer or other responsible particular person. In brief, a company entity is not going to shield you from the wrath of the IRS.

Late Payments

Money flow crunches are an inevitable event for virtually each and every enterprise. So, what takes place if you make a late payment for employment taxes. Unless you can display a affordable reason for the delay, the IRS is going to penalize you.

Late payment penalties range in quantity dependent on the delay. If the delay is much less than six days, the penalty is two percent. Delay for six to 15 days and you are seeking at 5 percent. More than 15 days in delay is going to push the penalty to 15 percent. If you delay this long, the IRS will be peppering you with penalty notices telling you where you stand.

In Closing

Whatever you do, make positive you deposit employment taxes with the IRS in a timely fashion. Take a moment to consider about the worst factor you have ever heard carried out by the IRS. If you fail to pay employment taxes, the actions taken by the IRS will be ten occasions worse and you will be the one particular telling horror stories. mcgraw realtors