What kind of tax liabilities do I have to worry
about in my business?
Failing to pay payroll taxes is a classic
example of where many businesses get into trouble. As an employer, a business has the responsibility for
withholding certain taxes from an employee's paycheck (for example, income tax withholdings, social security,
federal and state unemployment and disability taxes). These amounts are not the employer's money and the employer
is responsible for collecting them on behalf of the government. The IRS and other tax authorities are very
unforgiving about failing to pay over these withholdings in a timely manner. In addition, the employer is
responsible for the business's portion of social security and other payroll taxes that must also be paid on time.
If the employer fails to pay in these taxes and withholdings, penalties can be assessed against the owners and/or
managers of the business up to 100% percent of the amounts owed.
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