Sunday, January 3, 2010

Payroll Tax Problems:

If you're have problems with payroll taxes, contact me immediately.

As an employer, it's your responsibility to withhold a certain amount of money from each paycheck and then remit these funds every quarter. The temptation is to dip into this honeypot and pay for some pressing expenses.

But, what if you are still short at the end of the quarter? In this case, the consequences can be severe, in terms of interest charges and penalties (which can be 100% of the tax liability). There may even be criminal sanctions and prison time. Oh, and the IRS may shut down your business.

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