Tampa Tax Attorneys Assisting With Payroll Taxes In Sarasota, St. Petersburg, Clearwater and All of Florida

Employers are required by federal, state and local tax authorities to withhold specific taxes from their employee’s wages, commonly referred to as payroll taxes or withholding taxes. Payroll taxes are assessed by the federal government, all fifty states, and by numerous cities, and typically appear as a deduction from an employee’s wages on their regular pay stub. Various bases are used to assess these taxes on employers and employees, and it is the employer’s duty to collect and pay these withholdings to the tax authorities.

Federal withholding taxes are required with respect to income tax, Social Security and Medicare taxes, and unemployment taxes, among others. Failure to pay federal withholding taxes in a timely manner will result in a 2% to 10% automatic penalty, and failure to comply with the mandatory reporting requirements will result in additional penalties.

Florida employers are required to file quarterly reports with the State Department of Revenue, and payments may be made by paper filing or electronic filing. Employers that are late in paying the withholdings from their employees will be assessed a penalty, and 1% per month interest is assessed on the late payment until the tax is paid.

When federal income tax withholding and Social Security taxes are not paid by the employer to the IRS a particularly severe penalty applies, known as The Trust Fund Recovery Penalty (TFRP). This penalty can be up to 100% of the amount not paid and may be assessed against the employer as well as any corporate officer having control over the funds from which payment should have been made. In addition if the TFRP is not paid, the IRS may impose criminal sanctions upon the taxpayer.

Navigating the requirements and implications of payroll taxes can be daunting for any business. The tax attorneys at Yesner and Boss, P.L. have the experience and knowledge to help you through any payroll tax problem or question, whether you are starting a new business or are well established in your field. Serving Tampa, St. Petersburg, Sarasota, New Tampa, Clearwater and areas throughout Florida, contact Yesner and Boss, P.L. for a consultation.