Owning your business is one of the greatest joys and accomplishments in life. Setting your own hours, deciding your own pay and taking vacation time when it best suits your family needs is truly amazing. However, owning a business also comes with more responsibilities, including paying all the payroll taxes for yourself and the people you employ. Failure to pay these taxes on time may result in the need for payroll tax relief help.
What Are Payroll Taxes?
If you are new to business ownership, payroll taxes may take you quite by surprise. One reason for this is that they are much higher than what you pay when working for someone else. That’s because your employer paid a portion of those taxes, but now you pay the full amount yourself. If you employ someone else, you pay a portion of their taxes too. Self-employed people pay the full 15.3% of Medicare and Social Security taxes, while employees pay 7.65%.
What Happens When You Don’t Pay?
No business person deliberately dodges payment of taxes they and the IRS know they owe. That means intentionally going up against the country’s most powerful tax agency and no one would wish that on themselves. However, cash flow is a problem even in old and established businesses, which can make sourcing payroll tax payments incredibly difficult.
Regardless of the reason, the IRS will want its money. If you have fallen a few quarters behind, then a field office may take on your case. If it gets assigned to an individual revenue officer, this person may visit the business and even your home as part of their efforts to pressure you to repay.
What Can You Do?
To get payroll tax relief, the best thing to do at this point is to seek representation. Tax laws in America are incredibly complex. There may be loopholes the agent may not inform you of or rights that fall by the wayside because you were unaware of them. Having a representative on your side helps to reduce these instances.
It is also important to be selective about the information you provide to revenue officers. They may catch you off guard as you open up shop or when you return home from the gym. This surprise visit may compel you to let your guard down and give information away to earn their sympathies and a little leeway.
This is more often than not a mistake. They are only doing their job, so be polite. However, get professional assistance as soon as possible before they resort to heavyhanded tactics. For more information about how Resolve Tax can help, give us a call at 1-800-721-3890.