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I am Behind on Paying My Payroll Taxes, What Now?

by Brett Backues on July 17, 2016
Neglecting payroll taxes might seem like a minor offense. After all, the building’s electricity isn’t getting shut off, employees are getting their paychecks, and business is happening as usual. It might be the first payment you avoid when finances are tight. But if you don’t contribute payroll taxes, you’ve been breaking the law. The IRS will notice this, and you might get fined. The government used payroll taxes for social security, medicare, and unemployment insurance, and they come out of your employees’ paychecks. So if you fall behind on your payroll taxes, you are essentially taking money directly from the wallets of the employees who payed into those services.
You face a variety of consequences if you’re behind on payroll taxes in Issaquah, depending on how late your payments are and whether you filed. These include:
  • Fines for failure to file delinquency and fines for failure to pay. Interest is charged and may increase over time.
  • Tax lien that obtains your assets if you file for bankruptcy.
  • Tax levy that empties your entire business bank account to pay some of the fees.
  • Loss of operating license from state government.
So what can you do to mitigate these damages? The sooner you start to pay, the less you will owe. Make a phone call to your state tax office to find out what you owe, and don’t procrastinate! While it might seem intimidating to face these challenges head on, it will pay off to resolve the issue quickly. Work with your local government to figure out the best solution, and hire an accountant in Issaquah like MyCFOLink to adjust your monthly budgets.
Be aware that this information about delinquent payroll taxes is the opinion of MyCFOLink alone and we recommend that you hire a lawyer and an accountant when in need of consultation about payroll taxes.