penalties and interest: Misclassed Workers?
- 02/10/22 11:04 AM
As a business owner, you are obligated to collect and remit payroll taxes for your employees. But you are not required to collect and remit payroll taxes for independent contractors.That’s why it’s important to correctly classify workers as either employees or independent contractors.But here’s the problem: the rules for correctly classifying workers as either employees or independent contractors are unclear and confusing.And what happens if you misclassify a worker as an independent contractor? Then you can find yourself owing hundreds of thousands of dollars in back employment taxes, penalties, and interest.But wait! If this happens to you, the safe harbor of … (5 comments)
penalties and interest: Issues for Non-Filers to Consider
- 09/21/21 03:59 PM
So, you haven't filed tax returns for quite a few years. Below are items for you to consider. 1. Yes, the IRS knows. It is just a -matter of time before they contact you. 2. The Failure-to-file penalty is 5% of the unpaid taxes for EACH month or part of a month that a tax return is late. The penalty won't exceed 25% of your unpaid taxes. 3. The Failure-to-Pay penalty continues until the tax is paid in full, up to a maximum of 25% of your unpaid taxes. 4. Interest is charged on penalties. 5. The IRS may file a Substitute for Return for you. … (5 comments)
As a business owner, you are obligated to collect and remit payroll taxes for your employees. But you are not required to collect and remit payroll taxes for independent contractors.That’s why it’s important to correctly classify workers as either employees or independent contractors.But here’s the problem: the rules for correctly classifying workers as either employees or independent contractors are unclear and confusing.And what happens if you misclassify a worker as an independent contractor? Then you can find yourself owing hundreds of thousands of dollars in back employment taxes, penalties, and interest.But wait! If this happens to you, the safe harbor of … (5 comments)
;)
;)
;)
