Employment Tax Issues Attorney in San Antonio, Texas
If you operate a business in the United States, it is an obligation to collect and pay taxes from your employees, including yourself, matching contributions on your own to stay in compliance with federal and state requirements. Fortunately, in Texas, there is no state income tax, nor do any cities or counties impose local income taxes.
Employers who find themselves struggling to stay in business often resort to collecting the taxes from employees and then not paying what they collect or what they owe as employers in an attempt to stay afloat. Of course, the Internal Revenue Service (IRS) may have something to say about this strategy. The agency will come after the business to recover past-due taxes, penalties on top of what’s owed, and significant compound interest to what’s been withheld and not remitted.
If you’re operating a business in or around San Antonio, Texas, and you’re facing IRS problems because of past-due taxes, perhaps in the form of an audit or a demand for payment, contact me at my firm, Melissa L. Ellis, PC for dependable legal assistance.
I have over 24 years of experience in helping businesses resolve their employment tax issues. I will review your overdue or delinquent tax problems with you and advise you of your options going forward to continue functioning as a viable business. Don’t face these challenges alone – reach out today to get the help you need. I also proudly serve clients in Houston, Austin, Dallas, and McAllen, Texas.
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Overview of Employment Taxes
As discussed above, an employer is responsible for collecting taxes – deducting from payrolls, in other words – for income, Social Security, and Medicare, and when it comes to Social Security and Medicare for making matching contributions. The employer must also submit, without employee participation, Unemployment Insurance (UI) taxes to the State of Texas and also the Federal Unemployment Tax Act (FUTA) obligation annually to underwrite state and federal programs for the unemployed.
Also, there is an Additional Medicare Tax of 0.9 percent when any employee’s wages pass $200,000 in a calendar year. There is, however, no employer match for this Additional Medicare Tax.
It is vital to speak with a reliable attorney who can review your specific situation and develop the best plan of action in regard to the circumstances.
When Do Employers Have to Submit Taxes?
How often an employer must submit withheld and matched taxes depends on the frequency of paydays and the dollar amount of payroll in the previous year.
For instance, generally speaking, if wages are paid monthly, then taxes are due by the 15th day of the month following the payment of wages. If wages are paid semiweekly, when taxes are due depends on the day on which the wages are paid. If paid on a Wednesday, Thursday, or Friday, taxes must be deposited by the following Wednesday. If paid on a Saturday, Sunday, Monday, or Tuesday, taxes must be deposited by the following Friday.
Employers are also required to submit a quarterly federal income tax return known as a 941 Return, and an annual FUTA Return known as a 940. Not submitting these returns can obviously be a red flag to the IRS.
Dealing With Employment Tax Issues: How an Attorney Can Help
If you fall behind on your tax obligations as the owner/operator of a business, you can be sure the IRS is going to spring into action, using every legal means at their disposal. First, there may just be a letter that arrives in the mail. Later there may be visits or meetings requested by IRS officials or even audits.
There are ways to cope with these demands in order to stay regulated as a business, or simply to buy time until you can catch up on what you owe. Strategies include:
Submitting an Offer in Compromise to reduce your obligation or arrange a monthly-payment plan for your past-due taxes.
Obtaining a short-term deferral until you can catch up.
Negotiating an installment agreement.
Challenging the IRS’s assessment of what’s owed to determine if there were some sort of accounting error.
Negotiating a lien release if the IRS has placed a lien on your business so you can obtain a loan to make your obligations current.
Filing for an abatement of interest and penalties.
The important point is to work with an experienced tax attorney to find the best route to satisfying IRS demands and staying afloat as a business entity.
Employment Tax Issues Attorney Serving San Antonio, Texas
If you have employment tax problems for your business in or around San Antonio, reach out to me immediately. Let’s work together to get your business and its tax obligations back on track. It’s in everyone’s best interest – yours, your employees, and Uncle Sam – if you thrive and prosper as a business. Reach out to me at my firm, Melissa L. Ellis, PC when tax problems present themselves.