3 Reasons Small Businesses Should Take Payroll Taxes More Seriously

Payroll Taxes

Payroll TaxesNobody wants to pay taxes, but it is not a question of convenience or preference, it is about what the law mandates.

A recent Bloomberg article reported that U.S. small business owners are in trouble with the government, owing employment-related taxes amounting $4.5B last year; these payroll issues resulted into a hefty fine of $6.8M. Unlike larger companies, small-sized enterprises tend to be usual suspects of tax evasion—and the victims of tax collectors.

As a small-sized enterprise owner, you should consider hiring legal and accounting teams to avoid digging a hole for yourself. Because if not, you might:

Be a Constant Object on the IRS’s Radar

According to an established Minnesota law firm—Batten & Beasley—SMEs have a reputation for not (incompletely) paying different types of levies. Uncle Sam knows that small companies the largest source of uncollected taxes. Tax collectors are closely watching every penny of your payments, waiting for you to underpay the levies you are supposed to shell out—intentional or not.

Without experienced tax attorneys on your side, you would be at the mercy of the IRS and defenseless against its ferocious collection tactics for your alleged debts.

Look at a Huge Debt Instantly

A brilliant payroll firm is always updated with the government’s comprehensive tax rules. As your company grows and hires more employees, the guidelines you have to comply with also change. The difference of one rule to another may be little, but it is enough to serve as a ground for tax evasion. Penalties add up fast and accrue to become a large tax debt before you know it.

Commit a Federal Crime

Failure to file or pay payroll taxes can be a federal crime. Your case can escalate quickly to the Department of Justice if the authorities can prove your lack of action is a deliberate move. As the truth is the most believable scenario in the eyes of the law, having esteemed tax attorneys to fight for your rights is paramount.

Tax problems can crush your business to the ground. Be equipped to abide by the IRS’s regulations to stay out of trouble and have a reliable legal representative to protect your best interests.

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