If you get in a cash pinch, DO NOT delay paying your payroll taxes as a stopgap measure.
This is what the Dept. of Justice has to say about withholding payroll taxes (trust fund money) and not turning it over to the IRS:
"An individual’s failure to comply with employment-tax obligations is not simply a civil matter. Employers who view amounts withheld from employee wages as a personal slush fund, treat withheld employment taxes as a loan from the government that can be repaid if and when they see fit, or whose business model is based on a continued failure to pay employment tax, are engaging in criminal conduct and face prosecution, imprisonment, monetary fines and restitution. According to statistics provided by IRS Criminal Investigation, in the 2015 fiscal year, individuals convicted of employment tax crimes were sentenced to an average of 24 months in prison." https://www.justice.gov/opa/pr/justice-department-reminds-employers-their-employment-tax-responsibilities
$184 weekly
$367 biweekly
$794 monthly
3. Misclassifying Employees
It is tempting for an employer to define an employee as an independent contractor. In most cases, employers are not legally required to withhold and pay Social Security, unemployment, and Medicare taxes for money paid to workers classified as independent contractors. Furthermore, employee classification a host of other things including benefits eligibility, minimum wage provisions, overtime pay eligibility, and workers' comp eligibility. Employers who misclassify are in jeopardy of state and federal penalties and should consult the comprehensive DOL guidance on the subject to be safe. The nature of an employer-employee relationship can also evolve over time and alter the classification. It's critical to review the relationships periodically.
Accuchex serves hundreds of companies like yours and can help you avoid these typical pitfalls. Call us today at (877) 422-2824.
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