Apart from handling the employee paychecks there are several other things that as a business owner you need to deal with and even make sound decisions about them for you t increase the productivity of your business. Some of these things are products and services, customers, vendors, marketing, employees, paying bills, invoicing and many others. Sometimes when the cash flow is tight we tend to forget paying out payroll taxes on time and this in turn results to a penalty. Sometimes a business can become bankrupt and hence require resources to be juggled in order to cover these taxes before they accumulate. Most employees are fond of withholding the money that comes from the employee paychecks and this is not good because you may end up using the money for paying other services instead of clearing your payroll taxes. Know more here!
A payroll service in any business or company is a very important service that needs to be handled with care and on time. The common reason why most people or companies fail to pay their loans on time is because of the misuse of the company resources or because of not having a payroll professional to assist you in paying the taxes on time. Usually there are several consequences for not paying your payroll taxes on time and these consequences are mainly legal actions and financial penalties. It’s therefore the role of employers to ensure that they withhold state and federal income taxes from the salaries of employees and to also ensure that they match their medical and social security taxes.
Failing to remit the payroll taxes on time will mean that you are personally liable unless you have a tangible reason for not paying on time. Payroll outsourcing is very important because this is one of the best ways of ensuring that your payroll taxes are paid on time hence avoiding unnecessary penalties or legal actions. In Australia the penalty for failing to pay the tax on time is usually calculated on the number of days that you have not paid the taxes. But if you have failed to pay the taxes for a long period of time then this will attract a legal action and a harsh penalty will be taken against you. The IRS can determine the penalty for your late payment. Check out this site: https://www.investopedia.com/terms/p/payrolltax.asp
Criminal prosecutions are imposed for those employers who willfully fail to pay the payroll taxes. The Australian IRS is very strict on this because most employers use the money that is supposed to be used in paying taxes for their own selfish interests. Criminal prosecutions can also be imposed on the partnership members, employees, corporate officers and any other person who is directly involved in the collection of taxes. It’s not wise to withhold the employees’ payroll taxes because this tax is very important to the government and even your employees. Every state has rules that govern the tax collection and these rules are almost the same. For more information about employee payroll taxes visit payrollserviceaustralia.com.au