As a small business owner it is important to understand the in’s and out’s of payroll taxes. Unfortunately, since small businesses seem to be a significant source of uncollected taxes, the IRS targets small business owners for payroll tax compliance.
There are simple steps you can take as a business owner to avoid IRS payroll tax audits. A CPA can help train your payroll staff to avoid common pitfalls like:
• not filing payroll information in a timely manner
• borrowing against withheld payroll taxes
• failure to pay
Not only can the business be at risk but the IRS can also come after business owners for payroll tax evasion and the penalties can be very stiff. Penalties can increase tax liability by over 33% plus interest along with seizing company assets.
It’s easy to protect the financial health of your company with the right expert CPA advice and staff training.