If your business has employees, your obligation to withhold “payroll” or “employment” taxes is inescapable. An employer is required to collect, account for and pay taxes that are withheld from employees’ wages to the appropriate regulatory authorities. Priori’s curated legal marketplace makes it easy to find and hire a lawyer to advise you on employment tax issues.
Payroll taxes include Federal, State and Local Income Tax, Social Security Tax, Medicare Tax, and State and Federal Unemployment Tax. Failure to properly withhold and pay the necessary payroll taxes is a serious violation that can result in the forcible collection of taxes due, as well as substantial penalties and accrued interest. If you find that your business has committed a violation, a tax lawyer can help negotiate a payment plan, an offer in compromise or an alternative solution to the problem. If you are opening an office in a new state or have an employee working from another state for any period of time, you should consult with a tax lawyer to make sure you’re in compliance with all tax obligations. An attorney can counsel a business on payroll tax obligations, help you solve any existing problems or establish reporting and payment requirements for the future.
Depending on your needs and location, a Priori tax lawyer can assist you starting from around $150 per hour to $450 per hour. In order to get a better sense of cost for your particular situation, put in a request to schedule a complimentary consultation and get a free price quote from one of our lawyers.
Are there any payroll tax exemptions for employers?
There are a number of tax-exempt organizations such as charitable organizations, religious organizations, political organizations, private foundations and other non-profits. These organizations have various requirements to qualify for exemptions and must meet certain reporting obligations in order to maintain exempt status. If you are interested in starting a tax-exempt organization or need help with your filing, a Priori Lawyer can help.
Can failure to pay payroll taxes result in criminal charges?
According to the tax code a willful failure to pay or withhold payroll taxes by a “responsible person” is a felony punishable by up to a $10,000 fine or five years in prison, or both. The IRS does, however, limit criminal charges to the most egregious cases, such as when the responsible person owns the business and diverts the money for personal use. Nonetheless, the potential for criminal charges emphasizes the importance of hiring a lawyer to ensure compliance with your business’s various employment tax responsibilities.