Miami Payroll Tax Attorney

Miami Payroll Tax Lawyer

One of the many responsibilities that employers and business owners have is managing their payroll tax. Managing this responsibility can be significantly easier with the assistance of a Miami payroll tax attorney. An attorney can help businesses plan their tax obligations and take action when issues arise, like an Internal Revenue Service (IRS) audit or violation of tax law.

The team at TaxSmith, LLC, has decades of experience in legal tax matters. Miami payroll tax cases can be complex, and they must follow all applicable tax codes. Our firm has experience managing payroll tax requirements and navigating audits or investigations of business taxpayers. With proper tax planning, our firm may be able to help you limit your payroll tax liability.

In Miami, a Taxpayer Assistance Center is located downtown at 51 SW First Avenue, Suite 311. You can manage IRS tax issues at this location, and an attorney can either prepare you for a meeting or represent your interests.

The Basics of Payroll Taxes in Miami

Employers pay their payroll taxes to state and federal tax agencies. In the entire U.S., the IRS collected more than $565 billion from businesses prior to refunds in the fiscal year 2024. The IRS collected more than $17 billion from business income taxes in Florida in the same year and over $198 billion from individual income and Federal Insurance Contributions Act (FICA) taxes.

Under state and federal payroll tax laws, employers are required to pay these taxes with each pay period. The frequency of this pay period depends on the size of the business and its payroll. These taxes include:

• Federal Unemployment Insurance Tax (FUTA), which is 6.00%
• Federal income taxes, which depend on business and payroll size
• Florida reemployment taxes, which begin at 2.70% for new employers but change after ten quarters
• The employer’s half of FICA taxes, which totals 7.65%
  • The employer’s half of Medicare taxes, set at 1.45%
  • The employer’s half of Social Security taxes, set at 6.20%
• State corporate income taxes are set at 5.50%

Who Is Responsible?

Both employers and employees are responsible for 7.65% of FICA taxes. The employee’s half of FICA taxes is taken from the employee’s paycheck. Most employers withhold this amount. If an employer doesn’t, however, the employee is responsible for paying Medicare and Social Security taxes.

Failure by either party to meet their tax obligations can result in serious penalties. If these penalties are ignored, they can continue to grow in interest. This can result in a substantial tax liability. While there are options to resolve tax debts, it is often better to prevent issues ahead of time by filing taxes correctly and on time. Employers can work with a payroll tax attorney to meet these requirements and reduce tax issues.

Why Do You Need to Hire a Payroll Tax Attorney?

You can save yourself a lot of time, stress, and money by avoiding payroll tax issues. When you work with an experienced payroll tax lawyer, they know the requirements for your business in your jurisdiction. It is easier to avoid penalties and other errors with legal support.

Legal representation also helps if you are facing an issue with a state or federal tax agency, such as an audit, violations, penalties, or even investigations. An attorney can review your situation and help you take the right steps and potentially negotiate with the tax agency.

What Are Common Payroll Tax Violations?

Payroll violations can happen whether you are a small business or a large corporation. Some common issues include:

• Improperly classifying employees as independent contractors, incorrectly lowering the tax liability for employers
• Failing to meet payroll deposit pay period or paying them late
• Failing to pay the state’s corporate income or reemployment tax
• Improperly calculating employee gross wages and forgetting deductions

Some of these errors result in costly penalties, while others can result in more serious consequences, including criminal charges. If you believe you have made an error, it is important to talk through the issue with an attorney to address it appropriately and potentially limit the consequences of the error.

FAQs About Miami Payroll Tax Law

Is It Worth Getting a Payroll Tax Lawyer?

Employers and businesses have many benefits from working with a payroll tax lawyer in Miami. An attorney can help employers determine which deadlines apply to them, meet those deadlines on time, and file accurate tax information. This can help businesses limit their risks and the potential for costly tax issues with state or federal agencies. An attorney can also help if an audit occurs or other issues with tax agencies, such as investigations or violations, arise.

How Much Does a Payroll Tax Attorney Cost vs a CPA?

A payroll tax attorney often has higher fees compared to a CPA (certified public accountant), but both professionals have costs that depend on many factors, like their experience and qualifications. The average cost of a tax attorney in Florida is $389 an hour, but this rate may be higher or lower depending on the type of service you are requesting. Both professionals can help with tax planning and information. Attorneys provide legal advice, which CPAs cannot do.

What Does a Payroll Tax Lawyer Do?

A payroll tax attorney helps business owners and employers. They practice state, federal, and local tax codes, as well as being aware of business law and accounting law, and how those areas interact with tax laws. They help employers manage their payroll taxes and file them correctly and on time. They also help employers with more complex issues like IRS audits.

How Can You Hire a Payroll Tax Lawyer?

To hire a payroll tax attorney, you want to look for an attorney with experience managing employer payrolls for businesses that are a similar size to yours. Look at the experience of the attorney in tax and business law and consider their qualifications. You can also see what current or past clients say about their abilities. Trusting an attorney with your business’s taxes is an important decision, so it is often helpful to talk with them in person.

Discuss Your Payroll Tax Obligations or Tax Issues

Businesses are highly regulated in numerous areas, and tax laws are no different. While payroll tax violations can happen to any employer, it should not be taken lightly. At TaxSmith, LLC, we can help you address violations with the IRS or a state agency. We can also help you avoid future issues with proper planning. Contact our firm today and see what we can do for you.