Payroll taxes are the taxes that employers pay on their employees’ behalves. This money is withheld from the employees’ paychecks and used to fund federal and state programs like Social Security, unemployment compensation, Medicaid and Medicare, and Workers’ Compensation benefits. The payroll taxes withdrawn to fund Social Security and Medicare are collectively withdrawn as the Federal Insurance Contributions Act (FICA) tax.
Failure to pay payroll taxes may be deemed an act of tax evasion. This is a criminal charge that can lead to penalties like jail time and asset seizure. An employer may also face civil penalties for failing to pay their payroll taxes, such as tax liens and levies. In any case where an employer is facing one or more of these penalties, it is in their best interest to work with an experienced tax lawyer to determine all of their legal options and which is best suited to their case.
Payroll Tax Violations
A few examples of payroll tax violations that the Internal Revenue Service (IRS) can discover during an audit include:
Potential Solutions to your Payroll Tax Issue
The right solution to your payroll tax issue depends on the nature of your violation. A possible solution for your case could be one of the following:
Work with an Experienced Chicago Payroll Tax Lawyer
When you are facing payroll tax issues, work with an experienced payroll tax lawyer to get them sorted out. Your lawyer can examine all the issues at play in your case and the applicable laws to determine the most effective legal solution for you. To start working with one of the experienced payroll tax lawyers on our team, contact North Suburban Legal Services LLC today to set up your initial consultation in our office.