Employment Tax Help

As an employer, you must report and deposit all taxes associated with employment. This is the area of running a company that many owners dread and for good reason. Even the most well-intentioned person can make a single mistake which may cost hundreds, if not thousands of dollars. Plus, with the IRS running an audit, the time, money, and effort that goes into correcting such a mistake can be quite serious.

It does not help that employment taxes can be complex. There are several different types of taxes that fall under employment taxes. Understanding what they are, when they must be paid, and how to fill out the appropriate forms will help keep your business in line with IRS regulations.

Call Mike Habib today at 1-877-788-2937.

What are Employment Taxes?

These are the taxes that are directly related to those you employ or if you are self-employed. Such taxes must be collected, deposited, and paid at the time designated by the IRS. This means that some taxes are annual while others are paid quarterly. This means keeping track of various forms that guide you in paying the taxes which are due.

Social Security & Medicare: In addition to withholding the taxes from employees for Social Security and Medicare, you must deposit your own matching amount. The taxes must be deposited according to federal guidelines. The current employee tax rate for Social Security is 6.2%, although that is subject to change in the future.

Additional Medicare Tax: This is a relatively recent tax that began in 2013. It requires employers to withhold 0.9% of an employee’s wages along with any compensation that exceeds the threshold amount based on the filing status of the employee. This particular tax does not require an employer match, so you only have to deposit the money collected from the employee.

Federal Income Tax: As an employer, you must withhold federal income tax from the wages of your employees. The W-4 form assigned to each employee will help you determine just how much tax needs to be withheld. Such withholdings are deposited according to Publication 15-T, the Federal Income Tax Withholding Methods.

Federal Unemployment Tax: This is a separate payment as compared to federal, Social Security, and Medicare. The federal unemployment tax is paid from the profits that you make. Employees do not pay this tax nor is it withheld from their paychecks.

Self-Employment Tax: If you are self-employed, then you pay the Social Security and Medicare taxes. This is similar in construct to how Social Security and Medicare taxes are paid by employers. The difference is that because you are self-employed, the taxes must come from you.

As you can see, there is a myriad of taxes from the federal government to keep track. This does not include taxes from the state. Keeping track of the taxes, rules, and regulations can be quite daunting. This is especially true if you are just starting your own business or running a company that is growing rapidly.

Under such circumstances, you probably want to hire the services of a tax professional. They can provide you with the information and guidance needed to ensure that you are paying the taxes you owe. Plus, that you are following all IRS rules and regulations. And finally, that you get the most out of what you pay thanks to finding advantages within the tax system itself.

Why Choose a Tax Professional? Employment Tax Representation Help

There are good reasons why a tax professional should be by your side. This is especially true if you have had difficulty in filing business taxes before. However, even if you are well-seasoned in filing business taxes, having the services of an experienced tax professional can be of great service. What follows are some of the advantages that a tax professional offers for your company.

Time: Perhaps the greatest advantage that a tax professional offers your company is time. The time normally spent on assessing and depositing taxes can now be performed by the tax professional. This allows the business owner to focus on running their business instead of having to pour over tax records and making the correct calculations.

Imagine how much time you could save by hiring a tax professional to do all the work in terms of paying the taxes listed above? The answer is not only the gain you receive in time, but the value of focusing on the business itself so it can grow and prosper.

Money: A typical business owner will receive a monetary gain thanks to the additional time they can spend running their company when hiring a tax professional. But there is more to it than that. A knowledgeable, experienced tax professional knows all the relevant tax laws, rules, and regulations which means that any savings which may be present can be utilized. The result is that you pay less in taxes while still maintaining good standing with the IRS.

Effort: One person can only do so much. By allocating the tax duties to a tax professional, you not only have more time to focus on your business you employ more effort as well. The result is that the business owner can focus on what they do best. While the tax professional can do the same, focusing on ensuring that all taxes are properly deposited for payment.

Knowledge: The US tax code is an ever-changing set of rules and regulations. This means that the ordinary business owner may not be able to keep up or understand all the latest changes that may affect their tax requirements. The tax professional not only keeps up with the changes they understand how it affects your business. In fact, they may help your company save money due to new rules and regulations in the tax code.

All these advantages mean that a good tax professional should be by your side when facing payroll employment problems. Paying the myriad of business taxes in the correct amount, at the proper time, and following all the latest tax laws can be quite trying. A tax professional takes that burden off your shoulders, so you can focus on your business while following all tax laws, rules, and regulations.

Call Mike Habib today at 1-877-788-2937.