7 THINGS BUSINESSES SHOULD KNOW ABOUT PAYROLL TAXES
Put simply, payroll taxes are taxes paid on the wages and salaries of employees. These taxes are used to finance social insurance programs, such as Social Security and Medicare.
Small businesses are the most likely target of increased tax compliance enforcement.
You can lose your business due to extremely aggressive IRS collection tactics for past due payroll taxes. When it comes to payroll tax debt, the IRS has unyielding power and authority.
Payroll tax penalties can add up quickly and generate huge tax debt. The penalties assessed on delinquent payroll tax deposits or filings can dramatically increase your total tax due.
Not filing or paying your payroll taxes can be considered a federal crime.
Borrowing from payroll taxes is against the law. Many small and mid-size businesses use the money they collect from payroll taxes to pay their operating expenses. The money collected from employees to pay their share of federal withheld tax, FICA and Medicare does not belong to the business and must be accounted for and paid to the government.
The IRS can come after business owners individually for payroll taxes owed. The IRS is the only creditor on the planet that can "pierce" the corporate veil and go after individuals.
What do I do if I get audited? If you owe payroll taxes, you need to get expert professional help before it’s too late. Representing yourself before the IRS would be like going to court without a lawyer.