Why Businesses Might Need A Payroll Tax Attorney

Payroll tax is something all employers and employees have to deal with regularly, whether we like it or not. It isn’t fun for employees to see how much of their earnings went to the government. It can also be a chore to calculate the takings and deal with the IRS. However, it is vital to ensure all figures are correct and punctual to stay compliant.

Those who struggle with the system and fall behind may find themselves in need of a top payroll tax attorney. How can these skilled lawyers help, what is the responsibility of employers, and why is payroll tax so important in the first place?

Why Is Payroll Tax So Important?

While workers might not like having to pay out so much from their paycheck, that money has an important purpose. Those taxes go on to fund vital government services that benefit citizens on a wider scale.

Some employees will also pay into additional plans depending on their line of work. For example, some government employees may pay into pension schemes, and there are also schemes related to infrastructure and maintenance. The breakdown can depend on the local laws.

The two biggest recipients of payroll tax are Social Security and Medicare. By taking a portion of income directly from workers and employers, everyone with the means to do so can contribute. Social Security is an essential resource to provide financial support for those in need.

This includes all those struggling with disability and those at retirement age. Therefore, workers who pay into these schemes know that are contributing to something they could depend on in hard times.

It is a similar situation with Medicare. Once workers reach the age of 65 and don’t have the same health insurance benefits, they can enjoy federal coverage for important services. So, workers who pay into a payroll tax scheme are indirectly protecting the future for themselves and their loved ones.

The Responsibility Of Employers

Employers are the middle person between the employees and the government. It is their responsibility to collect the payroll tax at the correct rate and pass this on to the government.

Employers must calculate the correct amount of tax to take out of the employee’s pay, hold onto that securely, match it with the employer contributions, and deposit it with the IRS. This must be done with no errors in the value of the deposit and no delays.

So, all businesses must have someone on their staff who can deal with payroll effectively and consistently. They should be experienced and responsible enough to deal with the full process on time and keep track of all the figures. Remember that if anything goes wrong, it all falls on you.

When Might You Need A Payroll Tax Lawyer?

Hopefully, you are currently doing all you can as an employer to meet these responsibilities and pay the appropriate amount. However, there are some that, either accidentally or deliberately, do not fulfill these obligations. A minority may do so on purpose to try and save money or claim back employee pay for themselves.

The paycheck may state the worker paid in, but there is a deliberate discrepancy with what the government receives. Others will accidentally pay the wrong amount because of basic errors, misinformation, or other honest mistakes.

The problem is that the government is going to be suspicious of any missed payment and take action. The IRS will look at you as the responsible party and begin an investigation into the missing funds. They can also issue penalties that increase in value as time goes on. For example, you can expect to pay 10% of the unpaid figure after 16 days of non-payment.

The best way to overcome the problem, correct mistakes, and maintain your reputation is to hire a payroll tax lawyer. They work with you and the IRS to come up with a suitable plan that is compliant with tax law and doesn’t leave you worse off.

There are several ways a professional payroll tax attorney can do this, such as negotiations on payment agreements, protecting you from further assessment, and looking into ways to reduce taxes in the future.

Also, it is worthwhile contacting payroll tax lawyers as a new business, even if you have no current issue with the IRS. The responsibilities and the differences in state law requirements mean it is easy for new employers to make mistakes.

It’s better to have all the information you can at the start and be diligent with your payroll records. A payroll attorney can make sure you have the correct legal information for your business and offer advice on how to handle the system and IRS generally.

Finding The Best Payroll Tax Lawyer For The Job

Whatever the situation and potential solution, you need expert support and advice at every step. The best payroll tax attorneys will have plenty of experience in this area. You can look up their credentials and ask about their experience before hiring them.

These skilled lawyers will also appreciate that every business has its own set of challenges and obligations. Just because all employers have to pay into Social Security and Medicare, doesn’t mean everyone goes through the same experience.

These lawyers will take the time to really listen to your situation, understand the details of the case, and come up with a solution that works for you. They will do all this with no judgment over the circumstances and in a consistently friendly and professional manner.

They will also be accessible for advice and further consultations as needed. Because payroll tax is an ongoing concern, this could become an ongoing relationship as your new attorney provides continued support and advice as your business develops.

If you are concerned about meeting your obligations with payroll tax or the IRS is questioning your contribution, contact a local payroll tax lawyer today. They can make everything much clearer and easier to deal with in no time and you can focus on other aspects of your business.