Pensacola Payroll Tax Attorney

Pensacola Payroll Tax Lawyer

Employers have numerous responsibilities to the business. This includes managing their business’s state and federal taxes, as well as payroll taxes. An experienced Pensacola payroll tax attorney can help employers fulfill their obligations and address any tax issues that arise.

At TaxSmith, LLC, we have decades of experience in tax codes and know how to help businesses protect their finances while also meeting their full tax obligations. We can help you plan your payroll taxes and determine how to limit your tax obligation, and we can also help with audits and investigations.

In Pensacola, the nearest Taxpayer Assistance Center is 6.2 miles from the city center, at 7180 9th Avenue North. When you have tax issues, you can use this office to navigate them. Our attorneys can also represent you in discussions or negotiations with IRS employees.Payroll Taxes in Pensacola

Payroll taxes are the taxes paid by employers at each pay period. The frequency of a pay period depends on the size of the business. In the fiscal year 2024, the Internal Revenue Service (IRS) collected over $17 billion from Florida business income taxes. Employer taxes are a certain percentage of their payroll and include the following state and federal deductions:

• The employer’s half of the Federal Insurance Contributions Act (FICA) taxes, including both Medicare and Social Security, totaling 7.65%
  • The employer’s half of the Medicare tax is 1.45%
  • The employer’s half of Social Security taxes is 6.20%
• Federal income taxes, which vary depending on the size of the business and the business’s payroll
• Federal Unemployment Insurance Taxes (FUTA), which are 6.00%
• State corporate income taxes, which are 5.50%
• Florida reemployment taxes, which start at 2.70% for the first ten quarters for a new employer, and then are determined based on several factors.

Employees are responsible for paying the other half of the FICA taxes. Often, an employer will withhold the employee’s portion of FICA from their paycheck. If an employer does not do this, it is the employee’s responsibility to ensure their taxes are paid. Employers have numerous payments to keep track of and pay.

If you, as an employer or business owner, fail to meet your payroll tax obligations, you can face financial penalties and accumulated interest. Severe errors in the process could even lead to criminal charges. When employers work with an attorney to navigate payroll tax laws, it can help prevent these issues and additional costs. There are many benefits to preemptively addressing tax issues with the help of legal support.

What Are Potential Payroll Tax Violations That Occur in Pensacola?

If employers are unaware of their responsibilities and the legal requirements for payroll taxes, several errors can occur in the process. Some common payroll tax violations by businesses include:

1. 1. Employee misclassification. Improperly classifying employees is a common error made by employers, where employees are listed as independent contractors. Independent contractors are responsible for their own tax payments, while employers are responsible for the tax payments for employees. Some employers use misclassification to avoid this tax responsibility. It is essential to understand what distinguishes a worker as an employee or an independent contractor to ensure your payroll is compliant.
   2. Late payments. Employers have numerous pay periods each year, and these periods may be monthly, quarterly, semi-monthly, or other deadlines. Deposits must be made on time, or employers will face late payment penalties. More serious consequences can occur when payments are not made.
   3. Not paying state taxes. Florida does not have a personal income tax, but it does have a corporate income tax. Florida businesses must pay both state and federal tax liabilities, or they can face serious penalties.

If you hire a payroll tax attorney, you can have a professional explain your responsibilities and help you meet them. If you become aware of errors in your taxes, it is crucial to act quickly and get advice from a legal professional. This could help you limit the worst of the consequences.

Why Should I Hire a Payroll Tax Attorney?

A payroll tax attorney can help you if you have issues with the IRS or the Florida Department of Revenue (DOR). Dealing with an IRS audit can be very stressful, and an attorney can help alleviate this stress by gathering important information and negotiating with the IRS or DOR. By working with an attorney prior to dealing with these agencies, you could potentially avoid costly and stressful errors.

FAQs About Pensacola Payroll Tax Law

Is It Worth Getting a Payroll Tax Lawyer?

It is incredibly beneficial to work with a payroll tax lawyer as an employer. Employers have numerous deadlines and requirements for their taxes, and working with a Pensacola payroll tax lawyer helps mitigate tax risks. Whether you need support filing your taxes or you are facing claims of payroll violations, a dedicated attorney can help you protect your interests. While a lawyer can be costly, they can save you money in the long run through effective tax planning.

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

The cost of a payroll tax attorney varies based on many factors, although most attorneys will have higher fees than a CPA (certified public accountant). Attorneys and CPAs both have significant experience in tax planning and filing taxes, but attorneys can give legal advice and support you in more complex issues, like an audit or dispute over what you owe.

An attorney’s fees are generally hourly and may depend on their experience and the complexity of your case.

What Does a Payroll Tax Lawyer Do?

A payroll tax lawyer helps employers and business owners with their knowledge of tax codes and business law. A payroll lawyer is also experienced in accounting and finance law and understands how state and federal laws impact employers and businesses. The attorney is also likely skilled in communication with clients and negotiation with the IRS.

If a business needs help avoiding issues with the IRS, a lawyer can help. An attorney can also help with audits or other active issues.

How Do You Hire a Payroll Tax Lawyer?

You can hire a payroll tax attorney by reviewing the qualifications of potential tax attorneys in your area, determining if they have state and local experience, and whether they have helped other businesses with their payroll taxes. You also want to talk with potential lawyers in person to ensure you feel comfortable working with them and to assess their communication capabilities.

Skilled Support in Pensacola

When you need legal help, contact TaxSmith, LLC.