One of the biggest stresses for business owners is their tax obligations. If you make mistakes while paying your taxes, this can cause your business to stagnate and in the worst case, it’ll lead you to close your operations.
So what happens if you owe back payroll taxes? This is a strain on any entrepreneur and you’ll need help paying back payroll taxes.
This quick guide will give you a basic idea of how to handle back payroll taxes. Always consult your tax advisor to assist you further.
Here’s the back payroll tax help you’ll need:
Understand the Rules
You want to understand that if you owe back payroll taxes, you’ll get a second chance to pay them back. You might have to pay penalty fees and interest, but you’ll have the chance to pay them.
You have to work out a deal with the IRS on when to complete your payment. They’ll also offer you the opportunity to create a payment plan so you can pay without issue.
Make sure you ask your accountant to help you determine the best option for your needs. They can help negotiate with the IRS on your behalf to get the best payment plan option for your business.
Also, speak to your accountant to help you determine the costs for payroll tax. You must know the exact amount you’ll have to pay per employee, so there are no issues.
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Now let’s look at a few best practices on how you can go about paying back payroll taxes.
You have to put aside money from your monthly revenue to pay back your payroll taxes. At times, this might be a challenge if your company is at a loss.
But you have to remember that if you miss a payment there’ll be even harsher penalties. It’s already a strain that you weren’t able to pay your payroll taxes in full the first time around.
Make sure you always pay in full. If there are extreme circumstances in which you can’t make such payments, you must communicate with the IRS. You have to let them know in advance that you’re unable to pay and give explicit reasons why.
You must also always pay on time. Additional late fees and interest payments will not only add strain but can list you as a neglectful taxpayer. This can cause issues in the future if you need to take out loans or request financing.
Use This Back Payroll Tax Help
This guide provides you with basic back payroll tax help so you don’t have to stress about your obligations.
Make sure you always consult your tax accountant on how much you’ll owe payroll tax. They can also help you negotiate a payment plan when you pay back your payroll tax.
Follow our best practices to pay back your payroll tax without issue. Make sure you always pay in full and always on time.
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