Employer Payroll Taxes are generally refer to as the Social Security (SSI) tax and the Medicare tax. SSI taxes were created to assist with token benefits for the retired workers, disabled, and dependents of these. Medicare taxes were created to provide assistance through medical benefits for retiring individuals when they reach the age of 65.
These are generally referred to as “payroll taxes” by employers. An employer may be as simple as self-employed, or in a partnership with other employees, and/or a large corporation with thousands of associates (employees). All employers are required by federal law to withhold payroll taxes from the wages earned by their associates. Employers are then mandated to forward these “payroll taxes” to the IRS under Internal Revenue Code.
Employers are required to withhold Federal Income tax, Social Security tax as well as contribute an additional portion of SSI tax as well. If the employer has employees and payroll, the business must file Form 941 quarterly, an Employer’s Quarterly Federal Tax Return, and Form 940; Employer’s Annual Federal Unemployment Tax Return.
When a business fails to properly file and pay these payroll taxes a serious circumstance is created as the IRS can collect these owed taxes from the employer and/or even a person (or persons) who were responsible for withholding and paying the payroll taxes. IRS Revenue Officers will then work on collecting outstanding payroll taxes and furthermore investigate the financial stability of the company. Yes, if outstanding payroll taxes are left unpaid this very well may result in the IRS closure of the business. Any business assets will then be up for liquidation to collect the debt.
Five Star Tax Resolution, a Tax Corporation currently assists taxpayers with payroll liabilities whether the business closed or open. We assist business owners comprehend and follow through on their outstanding payroll tax liabilities. Our clients are provided details in regards to IRS requirements and regulations which affect them. As with our individual taxpayer clients, Five Star Tax Resolution acts as a liaison between the IRS and the client. When a business owner returns to compliance with IRS payroll tax regulations, we help the client reach a resolution for any past due payroll taxes and assist the business with remaining compliant with regards to IRS business tax regulations. Many business cases end with the tax payer realizing significant savings on the taxes owed according to the IRS.