Payroll or Employment Tax Debt

Payroll or Employment Tax Debt

Payroll or Employment Tax Debt

Occasionally, business owners find themselves in a situation where they have acquired payroll or employment tax debt. There are tax laws that business owners are required to follow, in regards to their business and any employees they may have.  It is important to understand the difference between payroll taxes and other taxes.  Payroll or employment tax debt is different than income tax debt. Recognizing the differences and understanding the requirements of these laws will allow for strategizing the best plan to pay off any business payroll or employment tax debt.

Each pay period, business owners are required by law to withhold the appropriate amount of taxes (Social Security, Medicare and income taxes) from an employee’s wages. It is important that this withheld money/tax is submitted or deposited with IRS on behalf of the employees. Employees rely on their employers to handle this matter in accordance with the law. Not doing so is considered theft and legal action can be pursued. In addition to the taxes that have been withheld from the employee, the employer is responsible for paying the IRS the employer matching tax rate, which is the employer portion of the payroll taxes, including Social Security and Medicare taxes.

The employer is also responsible for submitting or paying Federal unemployment (FUTA) tax to the IRS. Only the employer pays the FUTA tax and it is not deducted from the employee’s pay. This amount is based on the number of employees that work at the business. Federal unemployment (FUTA) taxes are submitted at the end of the year or annually, while employment payroll taxes typically are filed and submitted to the IRS quarterly. Penalties may be added, and collection actions can be taken for all unpaid payroll or employment tax debt.

If an employer fails to properly file or deposit payroll taxes to the IRS, the employer will begin to accumulate payroll or employment tax debt. Within a period of time, aggressive action can be taken by the IRS to collect payroll or employment back taxes. The unpaid tax debt may grow quickly as penalties and fees are also added. These fees can rapidly increase over a short period of time, possibly faster than they would for unpaid personal taxes. The longer it takes to pay the tax debt, the bigger the tax bill can get.

In addition to penalties and fees, the IRS may possibly file criminal charges for not paying payroll tax debt. The IRS can refer the case to the Criminal Investigation Division and the Department of Justice. If this occurs, the consequences could be severe. Depending upon the outcome of the investigation, the individual may even face jail time. This is rare, but it can happen depending on the circumstances of the case.

Unpaid employment tax debt does not go away. Even if the business faces financial hardship, it is not dischargeable in a bankruptcy. However, there are other options available to get help with resolving business payroll or employment tax debt and consulting a tax relief firm with solid experience is essential.

It is in the best interest of the government to get business owners to pay back the money owed. The IRS is willing to work with the business owners to get that debt paid off but navigating these laws and unique circumstances may be difficult without professional guidance. Depending upon how much is owed and the circumstances of the case, it may be possible to settle for less. This may include establishing a payment plan to pay the employment back taxes, so that the business can remain operational.

Some business owners may not be prepared or have financial means to pay their back tax debt in full and many may not know where to start. Understanding employment tax laws may be challenging. It may benefit business owners with payroll or employment IRS tax debt to hire a tax professional. The tax relief experts at Coast One Tax Group are able to provide guidance, skillfully navigate through the IRS regulations and negotiate the best possible resolution option available.


Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest

4.8 out of 5 star

10 reviews

Jess T.
2019, July 30, 5:31 pm

Coast one Financial saw my family through

Coast one Financial saw my family through our entire settlement to the end! They did everything they promised, and got us a major settlement savings! My husband and I can\'t thank them enough!

2019, June 20, 1:42 pm

Coast one helped me out when I was up against the IRS

Coast one financial group helped me out when I was up against the IRS with a debt of close to $15,000. My ex husband left me in a bad place financially having lied on our last joint tax return. I also had some health issues that kept me from paying my taxes and instead paying for health insurance. Coast one handled all correspondence to and from the IRS as well as kept in touch with me throughout the whole experience. I settled for pennies on the dollar and can now resume my life tax debt free. I\'m so grateful for their help.

Donna S
2019, June 20, 1:31 pm

Coast one save me $34,000 in *** tax debt

Coast one save me $34,000 in *** tax debt the entire team worked me to get all info need for my settlement. I saw advertisement on tv for Coast One and had no I dead they could help me. We settled $440 great job guys!!!

Julie Churchill
2019, May 15, 1:43 pm

I was very happy

I was very happy with all people and quick responses. I would highly recommend this company

Cindy L
2019, May 3, 1:32 pm

My husband and I had about $40,000 in tax debt

My husband and I had about $40,000 in tax debt from some difficulties we had experienced a few years ago. The *** refused to make payment arrangements with us after we’d broken our past agreement following a job and personal losses. We’d seen these tax relief advertisements but wondered if it would work for us. I got an offer to help us by Coast One Financial Group.. I called them and left a message. An attorney called me back and asked if he told me for a few thousand (about $3000 I think) I he could help eliminate $10’s of thousands of dollars of *** debt. I said i’d Love to but didn’t have enough to pay them. He offered us a payment arrangement that we could afford and we did it. We ended up paying the *** $259.00 in exchange for eliminating $40900 of tax debt. We got the letter this week that our tax lien will be lifted within 30 days. This year we filed our taxes and paid them in full! What a relief and burden was lifted thanks to Coast One Financial and their attorneys. I would recommend them to everyone. They are amazing!

Reply from Coast1Tax :

2019, May 3, 1:32 pm

Thank you!

stephen k
2019, May 2, 1:59 pm

will tell many people to call

was very happy with the outcome will tell many people to call coast one for help and thank you.

Reply from Coast1Tax :

2019, May 3, 1:59 pm

Thank you!

Reginald G
2019, April 3, 2:00 pm

Coast One is the best hands down

Coast One is the best hands down, I would recommend Coast One to anyone who has any *** trouble. Everyone have had the up most respect for me situation and took time to walk me through it every step of the way until things was resolved properly. My hat goes off to the whole team. You guys rock

Reply from Coast1Tax :

2019, April 3, 2:00 pm

Thank you!

Cynthia K
2019, March 25, 2:01 pm



Reply from Coast1Tax :

2019, March 25, 2:01 pm

Thank you!

Ranting with Reg Hollywood
2019, January 15, 1:46 pm

step by step guidance

Thank you so much for your patience and step by step guidance, You guys are great and would recommend anyone who have a IRS problem to you guy. Thanks a million you guys rock. I appreciate everything you\'ve done

S. Atika
2018, August 30, 1:47 pm

I owed $44,000 and walked away paying $123 NO JOKE!

Coast One allowed me to have peace again. I was in debt over my ears and saw no way out. With a little time and patience they took me out of debt and gave me my life back. I owed $44,000 and walked away paying $123 NO JOKE! Thank you to the amazing team at Coast One!

Reply from Coast1Tax :

2018, September 1, 1:47 pm

On Behalf of Coast One, we thank you!

Call For A Free Consultation

If you owe $10,000 or more in back taxes, let our team of Tax Professionals help you today.

A 10 Minute Call Could Save you 92% Or More!