If there’s one thing that no one looks forward to facing, it’s penalties. Most of the time they involve having to pay some sort of fine, on top of any money you already owe, and in worse cases costing you your home or business. This especially applies to paying your payroll taxes. If there’s no one person that you don’t want looking over your shoulder, it’s the US government. Simple mistakes and noncompliance have been resulted in many businesses being audited by the IRS. Fortunately the folks at Nazpay are here to ensure that doesn’t happen. With the following tips, you can stay on Uncle Sam’s good side while continuing to remain profitable and keeping your employees happy.
Tip #1: Pay your taxes on time
Being late almost always comes with consequences, and when it comes to your payroll taxes, those consequences can be severe. That’s why it’s important to make your payroll tax payments on time and in-full. Due to small businesses being the biggest offender in regards to late tax payments, the IRS is constantly on high alert, making paying on-time even more imperative. If your business is unable to make the deadline, then immediately contact the IRS and file for extension to prevent them from having to come knocking.
Tip #2: Take care of penalties as they arise
If you do find yourself being hit with a penalty, be sure to take care of it as soon as possible. Payroll tax penalties can quickly add up, and before you know it you’re hundreds of thousands of dollars in debt, which has the potential to completely decimate your business’ finances. Tax debt is one of the worse types of debt you can incur, as it can cause you to lose your business and even face legal action. Paying your payroll tax penalties may temporarily hurt your pockets but in the end may just help save your business from closing down.
Tip #3: Never borrow from your payroll taxes
As tempting as using your payroll tax money to cover other expenses may seem, that money is not yours, making it illegal. Money withdrawn from the paychecks of your employees is to be collected by the IRS. To help combat businesses spending tax money, tax deposits must now be made approximately three days after paychecks are distributed.
Tip #4: When in doubt, seek help!
If you do find yourself in trouble with the IRS, don’t hesitate to seek immediate assistance. Taking your chances with the IRS without the proper representation usually doesn’t end well, meaning you’ll want someone on your side to back you up. Hiring the services of a tax attorney, or a payroll tax service that has an understanding in tax law (like Nazpay) is pivotal to coming out our case with your business intact.
Don’t allow payroll taxes be your business’ downfall. By following these tips you can stay on top of your payroll tax payments, keeping the future of your business secure in the process. If you have any questions or concerns regarding your payroll taxes, feel free to contact us at firstname.lastname@example.org or give us a call at 516-584-8035. Don’t forget to visit the Nazpay blog for more tips to financial success at www.Nazpayinc.com/blog.