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As an employer, you must pay employment taxes if you have employees. Don't pay and the IRS will rain around your march.

Penalties

If you have employees, you absolutely must deduct and withhold different fees from the paychecks of one's employees. You are managing their funds, since you are subtracting money from the employees salary. This fact is extremely important to the IRS and it places great emphasis on any failure to deposit employment taxes.

If you fail to pay employment taxes, you'll be at the mercy of a completely penalty. Yes, 100 percent. the trust fund recovery penalty penalty as, the penalty is considered against the person responsible for paying the taxes, not the thing. The person can be the operator, corporate officer or other responsible person. Simply speaking, a small business entity isn't planning to protect you from the wrath of the IRS.

Late Funds

Income crunches are a certain function for almost every company. So, what goes on if you make a late payment for employment taxes. Until you can show a reason for the delay, the IRS is going to punish you.

Late payment penalties range in amount with regards to the delay. significantly less than six times if the delay is, the punishment is two percent. Delay for six to 15 days and you're taking a look at five per cent. More than 15 times in wait is going to push the charge to 15 percent. If you delay this long, the IRS is going to be peppering you with charge notices telling you where you stand.

In Conclusion

Whatever you do, ensure you deposit employment taxes with the IRS in a timely fashion. Take a moment to think about the worst thing you have heard done by the IRS. If you fail to pay employment taxes, those things taken by the IRS will be ten times worse and you'll function as one telling horror stories. account