Changing employment laws generate more complexity that causes small businesses to struggle to remain compliant. Almost half of all small businesses are penalized annually for not correctly settling their IRS-mandated taxes. As a business owner looking to avoid being penalized, this is what you need to know.
What Are The Required Payroll Taxes?
Federal and State Income Taxes: Employers deduct these taxes from an employee’s pay schedule and handle allocating these monies to the IRS and its relevant entities.
FICA Taxes: Also known as Medicare and Social Security taxes. These taxes are withheld from employee pay as well as matched by employers. Additionally, FICA taxes are paid monthly or bi-weekly, depending on the size of the business.
Unemployment Taxes: This tax is based on the total pay of all employees and is either paid quarterly or annually.
What Are The Penalties For Unpaid Payroll Taxes?
Failing to correctly manage payroll taxes will be met with stiff penalties. The IRS institutes fines as a percentage of your gross payroll deposit based on the amount of time your deposit is unpaid. Clearly, finding an affordable solution can save you extensive IRS penalties.
.As a small business owner, you’re responsible for ensuring federal and state payroll taxes are current. The IRS considers this a very serious offense and will levy steep penalties for non-compliance.
What are the Penalties?
The IRS doesn’t play around when it comes to penalties for failure to accurately maintain current payroll taxes. Any unpaid employee payroll taxes are subject to penalties essentially doubling the actual tax. That may not seem like much initially, but if you employ a large staff, these fines add up and cause a severe impact on your bottom line.
PayWow is the mobile-friendly solution that handles your state and federal tax filings for you. What other benefits does PayWow offer?
PayWow is designed to work as your trusted advisor, handling payroll taxes, and State and Federal compliance. Manage Notifications to avoid missing payroll and and other important deadlines
Utilize PayWow’s companion app myPayWow to allow your employees access to their pay stubs and 1099 or W2s or to onboard and update their personal information
PayWow integrates with your current accounting software to streamline your payroll and onboarding process.
Take the stress out of dealing with the IRS and let PayWow be the solution you need to remain compliant. Manage your payroll, don’t let your payroll manage you!