Do you own a small to medium-sized business or an MNC in Florida? If so, going through payroll tax is a vital responsibility, and ensuring adherence to tax norms is difficult. Steering payroll tax issues can be tricky and intimidating for businesses as the IRS takes payroll tax compliance seriously, and any differences can result in hefty penalties and legal outcomes. Here comes a small business accountant in Florida who understands the distinct types of payroll taxes and the issues that employers face while running a small or large corporation! Below is the nitty-gritty information about payroll tax issues that Florida employers must know to stay compliant with the taxes.
Ways to Submit Payroll Taxes in Florida
How do the employers in Florida submit payroll taxes? Below are the tax filing options:
- Enroll in the Reemployment Tax Website – The Florida Department of Revenue provides a safe online portal to assist employers in managing their payroll taxes, known as the “Reemployment Tax Website.” All you have to do is enroll by going through the instructions on the FLDOR website.
- Employ an FLDOR-Sanctioned Software Vendor – The FLDOR maintains a long list of sanctioned software vendors for employers who intend to e-file their taxes. The Florida Department of Revenue deters employers from submitting payroll tax forms through email. It demands a charge if you want to send things in by snail mail.
Payroll Tax Issues in Florida That Need Legal Guidance
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Trust Fund Recovery Penalty
TFRP is imposed by the IRS, which is the most dangerous type of penalty. It holds people personally responsible for unpaid trust fund taxes that include social security, federal income tax, and medicare taxes retained from employees’ salaries. If the IRS decides that a liable individual can’t collect or disburse these taxes intentionally, they may levy the TFRP.
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Late Payments & Deposits
Refraining from depositing payroll taxes in a timely manner or paying the complete amount due can lead to severe penalties and interest fees. When large corporations or small businesses deal with massive penalties for late payments, the financial anxiety can be enormous. The IRS inflicts forfeitures, which are estimated as a percentage of the unpaid tax amount, which may rise gradually.
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Misclassification of Workers
Misclassifying workers as autonomous contractors to dodge payroll taxes and amenities often results in hefty back taxes, forfeitures, and interest if the IRS reclassifies these workers as employees. Such an issue usually originates from misapprehensions about the strict criteria for the worker category. Moreover, misclassification may also lead to underpayment or non-payment of employment taxes, such as social security tax, federal income tax, and Medicare tax.
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Fail to File Taxes
Failing to file needed payroll tax forms, such as Form 941, results in massive interest charges and penalties. If your business has failed to file such forms repeatedly, it might be deemed as deliberate neglect, forcing more stringent action from the IRS. The financial burden might be exacerbated by forfeitures and interest accumulated on the unpaid tax balance, which can result from delayed tax filing.
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Criminal Charges for Payroll Tax Deception
Deliberate misclassification of employees, wilful underpayment of payroll taxes, and deceptive payroll practices can result in hefty criminal charges. The outcome of payroll tax deception includes massive fines and years of confinement. Moreover, non-compliance with payroll tax obligations may also deteriorate an employer’s reputation, disintegrating trust with clients, employees, and other stakeholders.
Conclusion
Is your business grappling with any of the aforementioned payroll tax issues? You don’t have to navigate these difficulties alone. Due to the low rates, paying business taxes in Florida might seem straightforward, which is not the case! With the above-mentioned payroll tax issues in mind, you can steer these challenges and disentangle from the hassle of paying hefty taxes.
