Failure To Pay Employment Taxes - Penalties

As an employer, you must pay employment taxes if you have employees. Fail to pay and the IRS will rain all over your parade.

Penalties

If you have employees, you absolutely must deduct and withhold various taxes from the paychecks of your employees. Since you are deducting money from the employee's paycheck, you are handling their funds. This fact is very important to the IRS and it places great emphasis on any failure to deposit employment taxes.

If you fail to pay employment taxes, you will be subject to a 100 percent penalty. Yes, 100 percent. Known as the "trust fund recovery penalty", the penalty is assessed against the person responsible for paying the taxes, not the entity. The person can be the owner, corporate officer or other "responsible person." In short, a business entity is not going to protect you from the wrath of the IRS.

Late Payments

Cash flow crunches are an inevitable event for practically every business. So, what happens if you make a late payment for employment taxes. Unless you can show a reasonable reason for the delay, the IRS is going to penalize you.

Late payment penalties range in amount depending on the delay. If the delay is less than six days, the penalty is two percent. Delay for six to 15 days and you are looking at five percent. More than 15 days in delay is going to push the penalty to 15 percent. If you delay this long, the IRS will be peppering you with penalty notices telling you where you stand.

In Closing

Whatever you do, make sure you deposit employment taxes with the IRS in a timely fashion. Take a moment to think about the worst thing you have ever heard done by the IRS. If you fail to pay employment taxes, the actions taken by the IRS will be ten times worse and you will be the one telling horror stories.

Richard Chapo is with http://www.businesstaxrecovery.com - recovering overpaid taxes for small businesses. Visit our article page - http://www.businesstaxrecovery.com/articles - to read more tax articles.

MORE RESOURCES:

Darling ready to admit taxes must rise - guardian.co.uk

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/0i-0fd=Rurl=http://www.telegraph.co.uk/finance/financetopics/budget/3498998/Alistair-Darling-to-signal-future-tax-rises-to-pay-for-Governments-borrowing.htmlcid=1273133831ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNGu7uYQPiReM8wNVZRz6LN_ME38RAimg src=http://news.google.com/news?imgefp=agRNPHO8pZ4Jimgurl=www.telegraph.co.uk/telegraph/multimedia/archive/01015/alistair-darling-f_1015489c.jpg width=80 height=50 alt= border=1brfont size=-2Telegraph.co.uk/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/0-0fd=Rurl=http://www.guardian.co.uk/politics/2008/nov/22/economy-alistairdarlingcid=1273133831ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNHzBhnHzTUwl8Xpksq_TqPbMpW-DADarling ready to admit btaxes/b must rise/abrfont size=-1font color=#6f6f6fguardian.co.uk,nbsp;UKnbsp;-/font nobr8 hours ago/nobr/fontbrfont size=-1The chancellor, Alistair Darling, is preparing to admit that btax/b will need to rise after the next election as borrowing projections emerged showing the b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/0-1fd=Rurl=http://www.independent.co.uk/opinion/commentators/andrew-grice/andrew-grice-a-cool-chancellor-must-consider-putting-up-taxes-1029891.htmlcid=1273133831ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNGr1iXgy5EOMjAkpA-DfAe06h5aQAAndrew Grice: A cool Chancellor must consider putting up btaxes/b/a font size=-1 color=#6f6f6fnobrIndependent/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/0-2fd=Rurl=http://www.google.com/hostednews/ukpress/article/ALeqM5hf-YcvLHZOZCzWk1joMoEQhpYz5wcid=1273133831ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNGgm6363CXGiozthGEkXuCgEbAvmgSwinney#39;s call to cut btaxes/b/a font size=-1 color=#6f6f6fnobrThe Press Association/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/0-3fd=Rurl=http://www.guideandgazette.co.uk/latest-scottish-news/Swinneys-call-to-cut-taxes.4716301.jpcid=1273133831ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNFyM0n-aqjTXmIcJ4q6zw39eXV8ZASwinney#39;s call to cut btaxes/b/a font size=-1 color=#6f6f6fnobrGuide and Gazette/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/0-4fd=Rurl=http://uk.reuters.com/article/domesticNews/idUKTRE4AH44X20081118cid=1273133831ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNH_702HHPSqHcCWe8dKCdavG_Zb6wnobrReuters UK/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/0-5fd=Rurl=http://www.herald.ie/opinion/columnists/dan-white/slash-public-sector-pay-to-allow-tax-cuts-1542330.htmlcid=1273133831ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNETHM1Ekihm6z-op2T5nIfXW8IJDgnobrHerald.ie/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1273133831hl=ennobrall 116 news articles/nobr/a/font/div/font/td/tr/table

Cabinet Talk Aside, Corzine Faces State Crisis - New York Times

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/1-0fd=Rurl=http://www.nytimes.com/2008/11/23/nyregion/new-jersey/23polnj.htmlcid=1273129336ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNE-Hj4Jki1I94QKQWS_kzA3KdNcigCabinet Talk Aside, Corzine Faces State Crisis/abrfont size=-1font color=#6f6f6fNew York Times,nbsp;United Statesnbsp;-/font nobr4 hours ago/nobr/fontbrfont size=-1They include a state work force already unhappy about cuts in benefits from a year ago, homeowners worried about rising property btaxes/b, municipalities that b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/1-1fd=Rurl=http://www.courierpostonline.com/article/20081122/NEWS01/811220364/1006cid=1273129336ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNEjaZIoi5Xdr94oGgHd94AvJ3CpHAFreeze update to aid seniors/a font size=-1 color=#6f6f6fnobrCherry Hill Courier Post/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1273129336hl=ennobrall 4 news articles/nobr/a/font/div/font/td/tr/table

UK Budget Deficit Widens as Recession Saps Taxes (Update2) - Bloomberg

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/2i-0fd=Rurl=http://news.stv.tv/uk/46193-government-to-ditch-prudence-for-life-support/cid=1272895415ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNGbyrkC4uBNpKrxAGVEwWS1MjwHVAimg src=http://news.google.com/news?imgefp=xgcTpTo5IlkJimgurl=news.stv.tv/assets/img/feedImg/46193-government-to-ditch-prudence-for-life-support-200.jpg width=80 height=80 alt= border=1brfont size=-2stv.tv/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/2-0fd=Rurl=http://www.bloomberg.com/apps/news%3Fpid%3D20601102%26sid%3Da45f7Bf8OzZU%26refer%3Dukcid=1272895415ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNFREaKCMniM_xJgweaQlvSV-FN3FgUK Budget Deficit Widens as Recession Saps bTaxes/b (Update2)/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobrNov 20, 2008/nobr/fontbrfont size=-120 (Bloomberg) -- The UK fiscal deficit swelled as btax/b receipts stagnated, and economists warned of worse to come as the recession deepens and the b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/2-1fd=Rurl=http://www.iht.com/articles/reuters/2008/11/21/business/OUKBS-UK-BRITAIN-PREBUDGET.phpcid=1272895415ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNGOfC2zRFuvyVYB8qNKPRp-yH0umwGovernment to ditch prudence for life support/a font size=-1 color=#6f6f6fnobrInternational Herald Tribune/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1272895415hl=ennobrall 30 news articles/nobr/a/font/div/font/td/tr/table

Economic View The New Deal Didn’t Always Work, Either - New York Times

As jobless funds fall, states look to raise taxes - USA Today

Legislature, governor must find $5 billion in spending cuts ... - Seattle Times

State Lawmakers Consider Tripling Car Taxes - KGET 17

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/6-0fd=Rurl=http://www.kget.com/news/local/story.aspx%3Fcontent_id%3Dcc4a1901-3516-4065-95fb-84e3f1f5c93acid=1273094296ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNEA6i6SwPVpRRvvYCey9r3KN_Wb8gState Lawmakers Consider Tripling Car bTaxes/b/abrfont size=-1font color=#6f6f6fKGET 17,nbsp;CAnbsp;-/font nobr6 hours ago/nobr/fontbrfont size=-1State Lawmakers are once again talking about raising car btaxes/b to help erase a ballooning budget deficit. Democrats say it could bring in $6 billion a year. b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/6-1fd=Rurl=http://www.latimes.com/news/printedition/front/la-me-california-car-tax21-2008nov21,0,2097190.storycid=1273094296ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNGREahY52M7rscT67FVs_pk9XQetwBudget deal would include steeper car fees/a font size=-1 color=#6f6f6fnobrLos Angeles Times/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1273094296hl=ennobrall 7 news articles/nobr/a/font/div/font/td/tr/table

State deficit grows; will taxes have to rise? - MiamiHerald.com

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/7i-0fd=Rurl=http://blogs.miaminewtimes.com/riptide/2008/11/its_bleak_folks_financial_news.phpcid=1273018686ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNGhc5ggPuhU2n9dsG5bgk2yGCe6Mwimg src=http://news.google.com/news?imgefp=1x4R3GSuN5sJimgurl=blogs.miaminewtimes.com/riptide/foreclosure_articlebox.jpg width=80 height=73 alt= border=1brfont size=-2Miami New Times/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/7-0fd=Rurl=http://www.miamiherald.com/news/southflorida/story/782849.htmlcid=1273018686ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNEm5SYDQc-SNpyewLCeQtPayBlM3AState deficit grows; will btaxes/b have to rise?/abrfont size=-1font color=#6f6f6fMiamiHerald.com,nbsp;FLnbsp;-/font nobr4 hours ago/nobr/fontbrfont size=-1State economists punched a $2.1 billion hole in the state budget Friday, precipitating the need for a special lawmaking session and talk of possible btax/b b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-1fd=Rurl=http://www.news-journalonline.com/NewsJournalOnline/News/Headlines/frtHEAD06112208.htmcid=1273018686ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNF9UTqhSURJ0zOMtVU8BIxgAGirWA$2.1 billion budget hole growing/a font size=-1 color=#6f6f6fnobrDaytona Beach News-Journal/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-2fd=Rurl=http://www.forbes.com/feeds/ap/2008/11/21/ap5728985.htmlcid=1273018686ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNEltHBqNZV2n0ZytMeEc9h2DzzTlwFla. budget deficit expected to hit $2.2 billion/a font size=-1 color=#6f6f6fnobrForbes/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-3fd=Rurl=http://www.tampabay.com/news/article912950.ececid=1273018686ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNGkYxUYzFmflPsQ6af9hqw_WbAmtAState budget gap hits $2.14-billion/a font size=-1 color=#6f6f6fnobrTampabay.com/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/7-4fd=Rurl=http://www.heraldtribune.com/article/20081122/ARTICLE/811220371/-1/NEWSSITEMAPcid=1273018686ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNExhHY6cE4rAsR_CzDEGyDPAdwcjQnobrSarasota Herald-Tribune/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/7-5fd=Rurl=http://www.sun-sentinel.com/news/local/legislature/sfl-flfbudget1122sbnov22,0,2564306.storycid=1273018686ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNEgh385c7mteoC7fVlSvaJeYEjHMAnobrSun-Sentinel.com/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1273018686hl=ennobrall 30 news articles/nobr/a/font/div/font/td/tr/table

One Day Without Taxes - KNWA

Princeton property taxes going up again - WFIE-TV

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/9-0fd=Rurl=http://www.14wfie.com/Global/story.asp%3FS%3D9396536%26nav%3D3w6ocid=1272993520ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNGCUYQGm8FY2qq5WS8QyiObd9uJNwPrinceton property btaxes/b going up again/abrfont size=-1font color=#6f6f6fWFIE-TV,nbsp;INnbsp;-/font nobr6 hours ago/nobr/fontbrfont size=-1By Liz Nichols - bio | email In the city of Princeton, where residents pay the highest property btaxes/b in Gibson County, rates are going up again next year b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/9-1fd=Rurl=http://www.tristate-media.com/articles/2008/11/21/pdclarion/news/news1.txtcid=1272993520ei=A9MnSdPYNZjI9ASct-ANusg=AFQjCNHVf2L_aYQnofEfk9PbEj4enEaLKQProposed rate nearly $5 for city taxpayers in ‘09/a font size=-1 color=#6f6f6fnobrPrinceton Daily Clarion/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1272993520hl=ennobrall 2 news articles/nobr/a/font/div/font/td/tr/table

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