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As an employer, you must pay employment taxes if you've employees. Don't spend and the IRS will rain throughout your parade.

Penalties

You withhold and absolutely must deduct different taxes from the salaries of your employees, if you have employees. Because you're deducting money from the employees pay, you're handling their funds. This simple truth is extremely important to the IRS and great emphasis is placed by it on any failure to deposit employment taxes.

You will be susceptible to a 100 percent penalty, if you neglect to pay employment taxes. Yes, 100 percent. Known as the trust fund recovery penalty, the penalty is considered against the person in charge of paying the taxes, not the enterprise. The person can be the owner, corporate officer or other responsible person. In short, a business organization is not going to protect you from the wrath of the IRS.

Late Obligations

Income crunches are an inevitable event for practically every company. Therefore, what happens in the event that you produce a late fee for employment taxes. Unless you can show a reasonable reason for the delay, the IRS is going to punish you.

Late payment penalties range in amount with regards to the delay. The charge is two %, if the delay is less than six times. Wait for six to 15 days and you are considering five per cent. More than 15 times in delay is going to push the charge to 15 percent. If you wait this long, the IRS will soon be peppering you with charge notices telling you where you stand.

In Closing

Whatever you do, ensure employment taxes are deposited by you with the IRS in a timely manner. Take a moment to think about the worst thing you have heard done by the IRS. If you neglect to pay employment taxes, what taken by the IRS will be ten times worse and you'll be the one telling horror stories. how to job interview