If you have your own business, there is plenty going on all the time. In addition to taking care of your customers, you have to take care of your employees. Payroll can be very difficult with the many scenarios, and that can lead to an employment tax problem. Don’t feel like you are alone though as 941 payroll tax problems are extremely common when it comes to the IRS and what they have to look into.
It isn’t that businesses aren’t trying to comply with the IRS. However, when it comes to employment taxes, there are so many complex issues that have to be completed. There are forms that each employee has to fill out so that the right tax information can be used for their payroll. There are also forms that have to go with the deposit for payroll taxes.
A common employment tax problem is that the form isn’t filled out accurately. The IRS will help you so if you aren’t sure let them know. If you turn it in incorrectly, they may penalize you by adding on a fee. They don’t always do so, but they do have the option. If the amount of the payroll taxes isn’t correct or the form and funds aren’t turned in on time you are more likely to get a fine.
An employment tax problem can be due to social security tax, Medicare tax, Federal income tax, or the Federal unemployment tax. Any of these can create issues with the funds you turn in to them. For many of the taxes, the employer has to withhold funds from the employees. They also have to contribute a matching amount which is where the formulas can become very confusing.
The other concern is that some employment tax information has to be reported every quarter. Then there are those elements of it that only get reported once a year. Reporting though is very different from the actual depositing. This is also an employment tax problem that people get involved with.
In the simplest terms, the reporting tells the IRS how much money you owe them for employment taxes. The deposit though is the actual process of paying those funds. If you don’t pay them on time or in the correct amount, then there are concerns. The size of the payroll will determine how often you make deposits. It could be once a month or twice a month. The IRS will tell you which one is to be followed for your business.
Solving an Employment Tax Problem
If you are paying your employment taxes late or you don’t understand how much to pay, we can help you. We can assist you with getting your 941 payroll elements on track and done accurately. You certainly don’t want to be bothered all the time by the IRS. You also don’t want to see your profits reduced due to fines and penalties.
Regardless of where things are for you right now, we can fully assess the situation. We can help you to figure out how to pay your employment taxes on time. We can also help you to work out a plan if you are behind on the amount that you owe. Being able to negotiate a settlement on your behalf with the IRS is something we have lots of experience with.
Part of that settlement process includes getting fines and penalties removed from the amount you owe. Owning a business can be a great asset to you, but you don’t want to get into a jam with the IRS over employment taxes.