As a company, you should pay work taxes if you have employees. Fail to pay and the IRS will drizzle all over your parade.
If you have staff members, you absolutely need to deduct and keep various taxes from the incomes of your staff members. Considering that you are subtracting money from the worker’s income, you are managing their funds. This truth is extremely important to the Internal Revenue Service and it places terrific emphasis on any failure to deposit employment taxes.
If you cannot pay work taxes, you will undergo a 100 percent charge. Yes, 100 percent. Called the “trust fund recuperation penalty”, the penalty is assessed against the person accountable for paying the taxes, not the entity. The person can be the owner, industrial officer or other “responsible person.” In short, a business entity is not going to safeguard you from the wrath of the Internal Revenue Service.
Revenue flow crunches are an unavoidable event for virtually every business. So, exactly what occurs if you make a late payment for work taxes. Unless you can reveal a sensible factor for the hold-up, the IRS is going to penalize you.
Late payment charges vary in amount depending on the delay. If the delay is less than six days, the charge is 2 percent. Postpone for 6 to 15 days and you are looking at five percent. More than 15 days in hold-up is going to push the penalty to 15 percent. If you delay this long, the IRS will be peppering you with charge notices informing you where you stand.
Whatever you do, make certain you deposit employment taxes with the Internal Revenue Service in a prompt style. Take a minute to think about the worst thing you have actually ever heard done by the IRS. If you cannot pay employment taxes, the actions taken by the Internal Revenue Service will be 10 times worse and you will be the one informing scary stories.