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Payroll Taxes Archives

Payroll Tax Cut Agreed To By President and Congress

The Congress and the President have agreed to reduce employees' Social Security payroll taxes from 6.2% to 4.2%. Other proposals put forward would have suspended payroll taxes paid by both employees and employers, which would have equaled 12.4% of covered wages.

Concrete Company Said to Owe $230,000 in Payroll Taxes

A California concrete company owes hundreds of thousands of dollars in payroll taxes, according to state authorities. T.B. Concrete Inc.'s chief executive, Thomas Bernhardt, and his wife Rachel Bernhardt, the company's office manager, are accused of 15 felony counts of payroll tax evasion and workers' compensation insurance fraud. Both are free on bail.

Payroll Withholding Rates In Limbo Until Congress Acts

Taxpayers everywhere would like to know what Congress will do about the Bush-era tax cuts. With the tax cuts due to expire, tax rates could change dramatically - or not at all. No one is more concerned than payroll managers, who do not know at what rate taxes should be withheld from employees' wages.

IRS Studying Payroll Tax Compliance, Audits to Follow

The Internal Revenue Service estimates that the gap between payroll taxes owed and payroll taxes actually paid is over $200 billion annually. Orange County tax attorneys know that as a result, the IRS has begun a National Research Project (NRP) to collect data that will allow them to understand what people are doing that, intentionally or unintentionally, results in underpayment of payroll taxes.

Businesses Targeted for Payroll Tax Audits

Orange County tax attorneys know that the IRS is prioritizing the collection of unpaid employment taxes from businesses, regardless of size. Nobody is safe from IRS payroll tax audits as the federal government zeros in on randomly selected companies and individuals in order to take back what it is owed.

Orange County Tax Audits: Misclassification of Contractors

Desperate employers who misclassify workers as contractors in order to avoid paying taxes and benefits could find themselves audited by the IRS and end up paying substantial penalties for failing to pay employment taxes and payroll taxes. Orange County IRS audit attorneys are going to be defending taxpayers more frequently this year over contractor misclassification. The IRS says it will audit 6000 random employers to see how many of them misclassify workers.

IRS Issues Guidance on Hire Act, Part II

In the previous post, I briefly discussed the basics of the Hiring Incentives to Restore Employment Act (HIRE Act) and the related payroll tax exemption and tax credit. In this post, I'll discuss some of the IRS's new guidance on these issues.

IRS Issues FAQs on HIRE Act Payroll Tax Exemption and Tax Credit

The IRS has recently issued additional guidance on the Hiring Incentives to Restore Employment Act (HIRE Act) and the payroll tax exemption and tax credit that goes along with it. The additional guidance takes the form of a set of FAQs that present answers to questions about eligibility and scope of the exemption, how the act functions with other tax breaks, and issues concerning documentation of a new employees work or unemployment history.