• October 20, 2016
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By definition, payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff. Payroll taxes generally fall into two categories: deductions from an employee’s wages and taxes paid by the employer based on the employee’s wages. The combination of the employee’s withheld taxes is called “trust taxes.” Since it is withheld from the employee’s wages, the money belongs to the employee. It is the employer’s legal responsibility to accurately withhold, account for, and pay the amounts to the IRS on the employee’s behalf.

When to Make Payroll Tax Deposits

As an employer, you must deposit federal income tax withheld, social security and Medicare taxes for both the employee and the employer. Paying these deposits in a timely manner will help you avoid the stiff failure-to-deposit penalties which can be up to 15%. The IRS has two deposit schedules, monthly and semiweekly. You must determine, before the beginning of the calendar year, which of the two deposit schedules you are required to use. Determining your payment schedule is done using Publication 15 for IRS Forms 941, 944, and 945, or Publication 51 for Form 943.

Per the IRS, you must use electronic funds transfer (EFTPS) to make all federal payroll tax deposits, unless the small business exception applies. When to make payroll tax deposits is based on the schedule you are required to use. If you are an employer on a monthly tax deposit schedule, deposit employment taxes on payments made during a month by the 15th day of the following month.

If you are an employer on a semi-weekly deposit schedule, deposit employment taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit taxes for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday. The multiple filing taxes for making payroll deposits can be very confusing. The IRS provides Publication 509 for you to refer to so that you are paying on a timely manner.

Payroll Tax Liabilities Owed by the Employer

An employer must pay his or her portion of FICA (social security) and Medicare taxes as well as state and federal unemployment taxes. Until the required amounts are remitted to the government, they are payroll tax liabilities of the employer.

Payroll Tax Problems

Some types of payroll tax problems are not paying your payroll taxes, paying payroll taxes late, and penalties for non-payment or late payment of payroll taxes. The IRS is very forceful in collecting what is owed to them. They have the power to padlock your business doors thus forcing you out of business.

The IRS is authorized to assess the Trust Fund Recovery Penalty against any individual who is required to collect, account for, and pay the withheld unemployment taxes. The penalty is not limited to just one person. It can be assessed against one or more individuals.

If you are facing any type of payroll tax problem, get help immediately. The IRS can and will come looking for you and they do not stop until they collect what is owed to them.

Call a Professional

The tax codes and laws are written in a very complex language that only a professional tax attorney is an expert at understanding. If you are confused about when to file payroll taxes, how to pay them to the IRS, or if you are having payroll tax debt problems, call the Law Offices of Nick Nemeth at (972) 426-2553 or click here for a FREE TAX ANALYSIS. There is help available for you.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
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I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
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Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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