Mississippi Payroll Taxes Lawyer
Helping Individuals Throughout Ridgeland, Jackson and the Surrounding Areas Resolve Their Tax Problems
Failure to pay payroll taxes is one of the most serious tax offenses, and it incurs the harshest penalties. Incompliance with payroll tax laws has even caused some people to lose their business.
With the stakes so high, it is crucial that you have an experienced Mississippi payroll taxes attorney on your side. Damiens Law Firm, PLLC is your go-to law firm for all tax-related matters. On the corporate side of things, we help company owners find solutions to their tax problems which help them stay in business.
Distinguishing Payroll and Employment Taxes
While typically used interchangeably, there are important legal distinctions between payroll and employment taxes. Both reference taxes related to earnings. However, they differ somewhat in application,
Employment taxes are paid directly from the employer to the IRS. These typically include:
- Federal Income Tax
- Social Security Tax
- Medicare Tax
- Taxes related to the Federal Unemployment Tax Act
In contrast, payroll taxes are typically defined as such on IRS Form 941. They include contributions withheld from an employee's pay and matched by employers for medicare or social security. Form 941 must be filed once every quarter by employers in order to report on these withheld taxes.
What Is The Penalty for Not Paying Payroll Taxes?
Do you own a small business in Jackson or the surrounding areas? Among the most important federal and state laws that you as a business owner must comply with is the requirement to collect, report, and pay payroll taxes. The federal and state payroll taxes include:
Federal and state income taxes
Federal and state employment taxes
Social Security and Medicare
Did you forget to file your payroll taxes this year? Failure to report and deposit payroll taxes can result in severe consequences. If you are in a role that oversees payroll tax matters, the IRS may even hold you personally responsible for the delinquency. Depending on the size of the company and the amount of tax funds retained by the employer, the penalty can be as high as 100 percent.
The penalty for not paying payroll taxes on time is determined by how much you owe and how late the payment is.
The standard penalties, according to the number of days late a payment is, are as follows:
1 to 5 days – 2 percent
6 to 15 days – 5 percent
16+ days – 10 percent
10+ days after the first IRS bill – 15 percent
Missing a tax deposit deadline can also result in interest being charged on what you owe. The interest rate ranges between 3 and 6 percent.
We understand the stress and frustration that comes with filing payroll taxes. Damiens Law Firm, PLLC is here to help you through the process, give us a call today for a consultation!
Fight for the Second Chance You Deserve
Though the outcome may appear bleak, take hope in the fact that the IRS may waive your payroll tax penalty. Our Mississippi payroll taxes lawyer can help you evaluate your situation to see if you have a reasonable cause for not paying. You can depend on Damiens Law Firm, PLLC to make a compelling case to the IRS on your behalf.
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