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.
If you have been delinquent on payroll taxes, contact us at (601) 202-9788 immediately to speak with our tax attorney.
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.
Unpaid Payroll Tax Penalties
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
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.
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.
Call (601) 202-9788 today to schedule your complimentary consultation.
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