Failure To Pay Employment Taxes – Penalties
Failure To Pay Employment Taxes– Penalties
As an employer, you must pay work taxes if you have workers. Fail to pay and the IRS will rain all over your parade.
If you have staff members, you absolutely need to deduct and withhold various taxes from the paychecks of your staff members. Because you are subtracting cash from the worker’s paycheck, you are handling their funds. This truth is essential to the Internal Revenue Service and it positions fantastic emphasis on any failure to deposit work taxes.
If you fail to pay work taxes, you will be subject to a 100 percent charge. Yes, 100 percent. Known as the “trust fund recovery charge”, the charge is assessed against the individual accountable for paying the taxes, not the entity. The individual can be the owner, corporate policeman or other “accountable individual.” In brief, a business entity is not going to protect you from the rage of the Internal Revenue Service.
Money flow crunches are an inevitable event for virtually every company. So, exactly what occurs if you make a late payment for work taxes. Unless you can reveal an affordable factor for the hold-up, the Internal Revenue Service is going to penalize you.
Late payment penalties range in amount depending upon the hold-up. If the delay is less than six days, the charge is 2 percent. Delay for 6 to 15 days and you are looking at five percent. More than 15 days in delay is going to press the penalty to 15 percent. If you postpone this long, the Internal Revenue Service will be peppering you with penalty notices telling you where you stand.
Whatever you do, make certain you transfer employment taxes with the IRS in a prompt fashion. Take a moment to think of the worst thing you have actually ever heard done by the Internal Revenue Service. If you fail to pay work taxes, the actions taken by the IRS will be ten times worse and you will be the one telling scary stories.