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Employer Payroll Tax Responsibilities

Zuckerman Law, LLC April 12, 2022

man checking on incomes, using calculatorAccording to the most recent statistics from the Internal Revenue Service (IRS), taxpayers filed about 148.3 million tax returns in 2019, including payroll taxes. Payroll tax is a percentage withheld from an employee's income by an employer and paid to the government on behalf of the employee.

As an employer in Florida or anywhere across the United States, you have the responsibility to pay payroll taxes after withholding them. Under state and federal laws, non-payment of payroll taxes can result in both civil and criminal penalties. An experienced Florida tax law attorney can enlighten you about your payroll tax responsibilities as an employer and help you navigate key decisions.

At Zuckerman Law, LLC, I'm committed to providing knowledgeable legal guidance and brilliant advocacy to clients in tax-related matters, including payroll taxes. As your legal counsel, I can help you understand your payroll tax responsibilities and indicate what you're required to pay.

Also, I will ensure that you file employee payroll tax on time and help you avoid the severe consequences of non-payment. My firm is proud to serve clients across Fort Lauderdale, Florida, and throughout South Florida, including Boca Raton, Miami, Sunny Isles, Aventura, North Miami Beach, and Hollywood.

Withholding Payroll Taxes

A payroll tax can be described as a tax paid by an employer on the wages or income of an employee. It is a percentage or portion of an employee's income that an employer withholds and pays to the government on the employee's behalf. These taxes are used to finance public programs and social insurance programs, including Medicare and Social Security.

According to the Internal Revenue Service (IRS), employers are supposed to withhold the following from their employees' wages:

  • Federal income tax – 22.00% of an employee's wages

  • Social Security tax – 6.20% on wages up to the taxable wage limit of $127,200.

  • Medicare tax – 1.45% of taxable income for employees

  • Additional Medicare tax – 0.9% of an employee's wages

Furthermore, employers are required to deposit and report the amount withheld to the IRS. An experienced attorney can enlighten you about what you're required to pay and guide you through the process of filing your payroll taxes.

What Employers are Responsible for Paying

In addition to withholding federal income taxes, Medicare, and Social Security taxes from employees' wages, employers are also required to pay the following employment taxes:

  • One-half of Medicare taxes

  • One-half of Social Security taxes

  • All of the Federal Unemployment Insurance Tax (FUTA)

  • Florida Unemployment taxes

Both the employer and employee are required to collect and remit withholding taxes to the IRS. However, if the employee is self-employed or the employer fails to withhold these taxes, then the employee must pay them. Failure to remit or non-payment of payroll tax may lead to the wrath of the IRS.

Possible Penalties if the
Employer Does Not Pay Taxes

If an employer fails to remit employment taxes to the IRS on time, the penalties will depend on the number of days the payments are past due. The possible penalties for tax evasion – non-payment of payroll taxes by an employer – include:

  • 1 to 5 days late – 2% of unpaid deposits.

  • 6 to 15 days late – 5% of unpaid deposits.

  • More than 15 days late – 10% of unpaid deposits.

  • More than ten days late after the first IRS notice – 15% of unpaid deposits.

In order to avoid any of these penalties, it is important that you're payroll tax compliance. An experienced Florida payroll taxes lawyer can provide you with the detailed legal guidance you need to file your payroll taxes and past-due taxes.

How a Knowledgeable Attorney Can Help

The payroll tax responsibilities of employers are really extensive. Activities such as withholding, filing, and remitting payroll taxes can involve a lot of complexities. Nonetheless, it is important that you get them right and file your payroll taxes on time to avoid any resulting consequences. Therefore, working with a knowledgeable tax law attorney is crucial to understand your payroll tax responsibilities and execute them diligently and promptly.

At Zuckerman Law, LLC, I have the diligence, expertise, and resources to guide and assist employers and business owners in the legal matters of taxes. Using my in-depth understanding of laws addressing employment taxes, I can guide you through the often complex tax withholding and filing process. Also, I will help determine the right amount to withhold from your employee's wages and ensure the proper payment of these payroll taxes. I will outline a detailed checklist of all your payroll tax responsibilities and make sure you're payroll tax compliance.

Contact my firm – Zuckerman Law, LLC – today to schedule a simple consultation with a skilled payroll taxes attorney. I have the experienced legal counsel and reliable advocacy you need to navigate crucial decisions regarding your employee payroll taxes. My firm proudly serves clients across Fort Lauderdale, Florida, and throughout South Florida, including Boca Raton, Miami, Sunny Isles, Aventura, North Miami Beach, and Hollywood.