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As an company, you should pay employment taxes if you've employees. Fail to spend and the IRS will rain around your parade.

Charges

If you've employees, you certainly must deduct and withhold various taxes from the paychecks of one's employees. Since you're deducting money from the workers pay, you're managing their funds. This truth is extremely important to the IRS and it places great emphasis on any failure to deposit employment taxes.

You'll be subject to a completely penalty, if you don't pay employment taxes. Yes, 100 percent. Referred to as the trust fund recovery penalty, the penalty is assessed against the person in charge of paying the taxes, not the enterprise. The person could possibly be the owner, corporate officer or other responsible person. In short, a company enterprise is not likely to defend you from the wrath of the IRS.

Late Funds

Cash flow crunches are a certain function for almost every business. So, what are the results if you make a late payment for employment taxes. Until you can show a reasonable reason for the delay, the IRS is going to penalize you.

Late payment penalties range in amount with respect to the delay. The penalty is two per cent, significantly less than six times if the delay is. Wait for six to 15 days and you are taking a look at five %. More than 15 days in delay will press the punishment to 15 percent. If you delay this long, the IRS will undoubtedly be peppering you with fee notices telling you where you stand.

In Conclusion

Whatever you do, ensure employment taxes are deposited by you with the IRS in a timely fashion. Set aside a second to consider the worst thing you have ever heard done by the IRS. The actions taken by the IRS will be ten times worse, if you don't pay employment taxes and you'll function as the one telling horror stories. account