By Todd Whalen - November 11, 2021
As an employer, you are responsible for withholding and submitting several payroll taxes on behalf of every employee you hire.
Managing these taxes can quickly become a full-time job, which is why many large companies require human resources departments, but that just isn't possible for many small businesses.
Let's take a quick look at some of the payroll tax requirements that employers are responsible for withholding.
The two most significant taxes that every employer is responsible for withholding from every employee around the country are the federal social security and Medicare taxes.
Not only must employers withhold these taxes from employees, but they must also match them with their own funds.
In addition to social security and Medicare taxes, employers are also required to contribute federal and state (in most states) unemployment taxes on behalf of their employees.
While an employer can file and pay all of their payroll taxes on their own, most employers across the country prefer to let a payroll company handle everything for them or work with a tax professional.
In each of those later situations, you will have a tax expert working on your behalf to ensure that everything is submitted correctly according to all federal, state, and local guidelines.
Any money withheld from employee paychecks for tax purposes is technically the government's property, so there can be some severe consequences if that money isn't promptly submitted to those agencies.
Failure to pay any form of payroll taxes can result in significant fines, business closures, and even jail time.
If you would like to request payroll tax help in Denver, don't hesitate to contact Advanced Tax Solutions today. We can review all of your current payroll documents and provide guidance on how to best address any issue that we discover in the process to make sure you stay on the right side of all federal, state, and local governments.