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Back Payroll Taxes

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Back payroll taxes can create significant financial and operational challenges for businesses. These unpaid taxes can lead to severe penalties and legal consequences if not addressed promptly. This article will explain what back payroll taxes are, how to prevent them, and how Priority Tax Relief can assist.

What Are Back Payroll Taxes?

Back payroll taxes refer to unpaid employment taxes that businesses are required to withhold and pay to the IRS. These taxes include federal income tax, Social Security, Medicare, and federal unemployment taxes. Employers are responsible for withholding these taxes from their employees’ wages and remitting them to the IRS.

Failure to pay these taxes on time can result in back payroll taxes, which can accumulate quickly due to penalties and interest. The IRS takes payroll tax compliance seriously, and failure to address back payroll taxes can lead to severe consequences, including liens, levies, and even criminal charges.

Consequences of Unpaid Payroll Taxes

Unpaid payroll taxes can lead to a range of serious consequences, including:

  1. Penalties and Interest: The IRS imposes significant penalties and interest on unpaid payroll taxes, which can quickly escalate the amount owed.
  2. Liens and Levies: The IRS can place liens on your business assets and levy your bank accounts to collect the unpaid taxes.
  3. Trust Fund Recovery Penalty (TFRP): Responsible individuals, such as business owners or financial officers, can be held personally liable for the unpaid taxes through the Trust Fund Recovery Penalty.
  4. Criminal Charges: In severe cases, failure to pay payroll taxes can result in criminal charges, leading to fines and imprisonment.

How to Prevent Back Payroll Taxes

Preventing back payroll taxes requires diligent planning, accurate record-keeping, and timely payment. Here are some strategies to help avoid falling behind on payroll taxes:

  1. Regular Payroll Tax Payments: Ensure that payroll taxes are withheld from employees’ wages and remitted to the IRS on time. Use payroll software or a professional payroll service to manage and automate tax payments.
  2. Accurate Record-Keeping: Maintain accurate records of all payroll transactions, including tax withholdings and payments. This helps ensure compliance and provides documentation in case of an audit.
  3. Budget for Payroll Taxes: Set aside funds specifically for payroll taxes to ensure that you have enough money to cover these obligations when they are due.
  4. Stay Informed: Keep up-to-date with changes in payroll tax laws and regulations to ensure compliance.
  5. Consult a Professional: Seek advice from a tax professional or accountant to help manage payroll taxes and ensure compliance with IRS requirements.

How Priority Tax Relief Can Help With Back Payroll Tax Debt?

Priority Tax Relief is a tax resolution service that assists businesses in resolving complex tax issues, including back payroll taxes. Here’s how we can help:

  1. Expert Consultation: We provide expert consultation to assess your payroll tax situation and determine the best strategy for resolving unpaid taxes.
  2. Negotiation with the IRS: Priority Tax Relief can negotiate with the IRS on your behalf to set up payment plans, reduce penalties, or submit an Offer in Compromise.
  3. Documentation and Filing: We assist in preparing and filing the necessary forms and documentation to resolve back payroll taxes and comply with IRS requirements.
  4. Preventative Strategies: We offer guidance on how to prevent future payroll tax issues through proper tax planning and compliance.

Contact Priority Tax Relief at 888-708-2872  to learn more about Back Payroll Tax Debt and schedule a consultation.

Cancellation: Any cancellation of services must be made in writing and delivered to 400 S. Jefferson, Suite 100, Spokane, WA 99204 within three business days of the date of this agreement. If the client cancels services during this time, Company, reserves the right in its sole discretion to convert the agreed fee payment structure to an hourly one by which Client agrees to pay Company an hourly rate of five hundred fifty dollars an hour, entitling Client to a refund of up to fifty percent of all monies paid beyond the ten day money back guarantee in cases where no aggressive collection action is in place.

Frequently Asked Questions: Back Payroll Tax

What are back payroll taxes?

Back payroll taxes refer to unpaid employment taxes that businesses are required to withhold and pay to the IRS. These taxes include federal income tax, Social Security, Medicare, and federal unemployment taxes. Failure to remit these taxes on time results in back payroll taxes.

The consequences of not paying payroll taxes include significant penalties and interest, IRS liens and levies on business assets, personal liability through the Trust Fund Recovery Penalty (TFRP), and potential criminal charges that could lead to fines and imprisonment.

To prevent falling behind on payroll taxes, ensure regular and timely payroll tax payments, maintain accurate records, budget specifically for payroll taxes, stay informed about tax law changes, and consult with a tax professional or accountant.

The Trust Fund Recovery Penalty (TFRP) is a penalty imposed by the IRS on individuals who are responsible for collecting, accounting for, and paying payroll taxes but fail to do so. This penalty holds these individuals personally liable for the unpaid taxes.

You can resolve back payroll taxes by setting up an installment agreement to pay the debt over time, submitting an Offer in Compromise to settle the debt for less than the full amount owed, or proving financial hardship to potentially reduce penalties and interest. Consulting a tax resolution service like Priority Tax Relief can also help.

If you receive a notice from the IRS about unpaid payroll taxes, respond promptly to address the issue. Ignoring the notice can lead to more severe consequences. Consider consulting with a tax professional or a tax resolution service to help manage and resolve the situation.

Priority Tax Relief can assist by providing expert consultation to assess your payroll tax situation, negotiating with the IRS on your behalf, preparing and filing necessary forms and documentation, and offering guidance on preventative strategies to avoid future payroll tax issues.

Yes, using a payroll service can help prevent back payroll taxes by automating tax withholdings and payments, ensuring timely and accurate remittance to the IRS, and maintaining accurate records of payroll transactions. A payroll service can reduce the risk of human error and non-compliance.

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