IRS Payroll Tax with The Law Offices of Nick Nemeth
  • February 15, 2019
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Every employer must report and deposit payroll taxes on time. The IRS mandates employers to provide an accurate record of the total income of employees and the amounts withheld. It is, therefore, important for employers to know the steps involved in preparing and filing IRS payroll tax returns to avoid mistakes that can have serious repercussions, including heavy penalties. Continuing on the subject, in this blog post, we explain the basics of payroll taxes and how to pay payroll taxes to the IRS. Take a look.

Taxes Included in Payroll Taxes

There are three major types of taxes that are included in payroll taxes, including:

Federal Income Tax

Federal tax income refers to the taxes levied by the IRS on the annual earning of employees, trusts, or any other entities. Such taxes are applicable for any form of earning, including capital gains or employment earnings.

FICA Taxes

Taxpayers are required to deposit FICA taxes along with the federal income tax. FICA taxes are basically categorized into two parts, including:

Social Security

6.2% is withheld from an employee and 6.2% is paid by an employer – from wages above $128,400. The total percentage of social security to be withheld/paid amounts to 12.4%.

Medicare

When it comes to medicare, 1.45% is withheld from an employee and 1.45% is paid b the employer. The total percentage to be withheld/paid amounts to 2.9%.

Federal and State Unemployment Taxes

Federal and state unemployment taxes are solely paid by the employer. These taxes are not withheld from an employee’s wages. In a quarter, if an employees FUTA tax liability is above $500, they need to make quarterly deposits for the tax liability. However, if an employees tax liability is lesser than $500, they are not required to pay any FUTA taxes. In addition, any tax payment remaining at the end of a tax year, it needs to be deposited before 31st January.

Paying Payroll Taxes: Steps Involved

  • Issue Form W-4
  • Prepare paychecks
  • Account for withholding of benefits, taxes and other deductions
  • Make deposits of taxes withheld
  • Issue Form W-2
  • Report the employee taxes withheld, required employer taxes and deposits

Payroll Reporting

The IRS requires employers to report their wages and other forms of compensation that are paid to employees. It is mandatory for every employer to file all the relevant forms to report employment taxes.  In addition to income taxes, employers also need to report unemployment and FICA taxes. Once a company has deposited the taxes, they must report the deposited taxes by submitting Forms 940, 941, and 944, either through e-filing or on paper.

Must Read: Answering 5 FAQs about IRS Payroll Tax Payment

Wrap Up

IRS payroll taxes may seem simple on the surface; however, it can involve a lot of intricacies that calls for professional expertise. If you are unable to meet your IRS tax debt obligation, speak with an IRS tax attorney at the Law Offices of Nick Nemeth. We have a team of experienced IRS tax lawyers with years of experience in helping individuals and businesses navigate IRS tax debt problems. For a confidential, no-obligation consultation with one of our lawyers, fill out our contact form or simply call (972) 426-2553.

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Lucy FoyLucy Foy
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My first appointment I had with, Tax Attorney Nick Nemeth, gave me such a sense of relief. He listened and gave me his professional advice, Mr Nemeth took my case. I was well kept updated, by phone calls and letters. That really impressed me and gave me so much confidence in them. The case went on for a couple of months. The day I received the call from one of his team members Kyle, informing me that the case was resolved and that I owed absolutely nothing to the IRS, I was overwhelmed with joy. I would recommend this law firm to anyone that needs help, with any tax issue. Thank you, to the Law Firm of Attorney Nick Nemeth and his team.
Bradley RunyonBradley Runyon
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I received a tax bill in the mail from the IRS last year in 2023. The fees and penalties I owed were something I myself could not afford. I reached out to Nick Nemeth's firm and received the best experience you could imagine. The team was professional, educational, and fast. If you have a tax issue with the IRS using another firm other than Nick Nemeth's would be an error in judgment. I would recommend their services above others.
Sue HulsemanSue Hulseman
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Working with Nick Nemeth and his team to resolve my debt with the IRS was the best decision I could have made. I felt such relief knowing I didn’t have to deal with the IRS myself. They did a wonderful job and were responsive to my questions and kept me abreast of my case. My outcome was exactly what I was hoping for. I strongly recommend using them if you have an issue to resolve with the IRS.
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I had an incompetent tax preparer, who also ignored several notices from the IRS, which in the end resulted in a lien on my property. I did not know what to do and an attorney friend recommended that I contact the Nick Nemeth Law Offices. I met with Jamie Flores and Ivan Nalbantov in December 2021 for a free consultation, and right away was impressed by their thorough examination of my paperwork and extensive knowledge of IRS tax laws. I felt not pressured and appreciated their advice and in the end decided that I would pursue resolving the issue by myself. I paid the IRS Civil Penalty and, as recommended also submitted a letter to the IRS requesting a refund and explaining what happened. I am glad to report that my persistence finally paid off. My case took two years to resolve and I finally received a full abatement/refund check from the IRS in December 2023. I could not have done this without the straightforward recommendation of Jamie and Ivan; and I highly recommend the Nick Nemeth Law Offices to anyone needing help with the IRS.
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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.
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