Payroll Tax Problems and How We Can Help You Solve Them
You’d be surprised how often payroll tax problems can trip up even a well-run business. Payroll taxes are complex and there’s rarely a tax situation a government takes more seriously than not paying your proper payroll taxes. Read below to find out about some some common payroll tax problems, and how Charles Krengel, P.A., can help.
If you’d like to speak with a Charles Krengel, P.A. representative today, call us at (800) 892-9631 or click here to contact us online.
Keeping You On Schedule
Unlike your personal tax return, the government is extremely strict with payroll taxes. When you reach certain thresholds, you might yourself expected to get your payroll taxes paid by the next business day, or face penalties of up to 15%. We can help you look at your projected minimums and ensure you’ve got a system in place to make sure those payroll taxes are properly deposited.
Miscalculating Income
The rules dictating what qualifies as income and what doesn’t for your employees can be almost absurdly dense and complex. For example, most of the time, reimbursing employee expenses for commuting doesn’t qualify as income… except if those travel allowances you’re paying out go on for more than one year on the same assignment, they may qualify. Similarly, you might have to calculate the value of personal use of a company vehicle, housing benefits you pay for, and other perks you provide for your employees. Even reimbursing employees for expenses or giving them gift cards can count as income in certain situations.
We’ll help you work out what’s income and what that means to your payroll taxes, so you can be paid up before the IRS comes knocking.
Failure To Issue The Proper Paperwork
Every employer dreads that time of year when you have to print and issue W-2s, but it’s not only key that those W-2s go out and be completely accurate, but also that they go out by the deadline. The same is true of any 1099 forms you might need to issue to your independent contractors. Missing these deadlines in particular is severely frowned upon as it not only delays processing your taxes, it can delay the returns of other employees. We’ll help you stay on top of your payroll taxes, and ensure you’re issuing the right paperwork.
Employee Misclassification
The line between an employee and an independent contractor is being made thinner and thinner all the time, but misclassifying your contractors and employees can be a serious mistake; list one employee as a contractor and you’ll owe their payroll taxes and withholding. We can help you get into compliance and, in certain situations, make use of the Voluntary Classification Settlement Program to ensure you’re paid up.
Not Thinking Ahead
By far the biggest problem most businesses run into is the fact that they don’t think ahead. Payroll deductions are just part of payroll taxes; you’ve also got your share of the cost to budget for. If you don’t plan ahead, and factor in the costs associated with staying current on payroll taxes, you may find yourself dangerously behind right when you need to pay them most. We’ll help you budget for payroll taxes and ensure that you always are current on your payroll taxes, no matter how much you owe.
If you’d like to speak with a Charles Krengel, P.A. representative today, call us at (800) 892-9631 or click here to contact us online.