Resolve Your Payroll Tax Debt

It's easy for business owners to fall behind on payroll taxes due to the demands of running a company. Unfortunately, this can lead to pressure from the IRS to pay what’s owed. Some businesses get so far behind they stop responding because they can’t pay the debt all at once. Ignoring the issue only makes it worse, with penalties, fees, and potential asset levies adding up.

What is Payroll Tax Relief?

Payroll tax relief is a service offered to business owners who have fallen behind on payroll tax obligations. Whether the issue arose from an error, inability to pay, or business closure, addressing the owed taxes is essential. Payroll tax relief services assess your situation and help determine the best options for clearing your tax debt.

Employer Withholding Responsibilities

Employers must withhold Social Security, Medicare, and Federal Taxes from all W-2 employees' wages. Additionally, there is an unemployment tax for each employee. These payroll taxes must be remitted to the IRS quarterly.

Types of Payroll Taxes and Withholding Percentages

Payroll tax rates can change yearly, so always check the current year’s rates before filing. For 2023:
- Social Security Taxes: Both employer and employee contribute 6.2% each, totaling 12.4%.
- Medicare Taxes: Both employer and employee contribute 1.45% each, totaling 2.9%.
- Self-Employment Taxes: Business owners pay between 15.3% (12.4% for Social Security and 2.9% for Medicare).

Penalties for Not Paying Payroll Taxes

- Late Fees: The IRS charges late fees for missed payments, which can increase over time.
- Interest: Interest accrues on what you owe, increasing the total debt.
- Tax Lien: Substantial debts can lead to the IRS placing a tax lien on your assets.
- Loss of Business: A tax lien can result in the seizure of property, inventory, and machinery.
- Jail: Failure to pay taxes can lead to criminal charges and potential imprisonment.

How to Resolve Payroll Tax Debt

The best way to resolve payroll tax debt is by working with a professional tax relief company experienced in payroll tax resolution. While you can deal with the IRS on your own, the process can be overwhelming without the necessary time, patience, and knowledge. An experienced tax resolution company can negotiate on your behalf and ensure you take full advantage of any IRS tax relief programs you qualify for

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