Ponte Vedra Payroll Tax Attorney

Ponte Vedra Payroll Tax Lawyer

Employers have a plethora of responsibilities that contribute to their business running both efficiently and legally. One area that requires careful handling is payroll tax. Even a minor error can have severe consequences for both the employer and the employee. If you are under investigation or have been charged with violating your payroll tax liability, speaking with an experienced Ponte Vedra payroll tax attorney should be your top priority.

TaxSmith, LLC, is a dedicated team with decades of combined experience in tax law. Ultimately, our goal is to find the most appropriate solution for your problem. Then, we can work diligently to achieve that solution. Speaking with a tax lawyer from our law firm is one of the most effective routes to fixing any mistakes that were made in payroll taxes, especially if an investigation or an arrest has already occurred.

Payroll Taxes

Employers are responsible for withholding FICA taxes, such as a Social Security or Medicare tax, from their employee’s paychecks each pay period. The IRS requires these taxes to be paid on time, with the total amount due depending on the size of the payroll. Some businesses must pay these taxes as soon as the day after payroll checks are sent to employees. If these taxes are not withheld from an employee’s check, the employee is responsible for paying them.

Other employment taxes that an employer is responsible for paying include:

• All Federal Unemployment Insurance Tax (FUTA)
• Florida’s Reemployment Taxes, the state unemployment tax
• The portion of Social Security taxes not withheld from payroll
• The portion of Medicare taxes not withheld from payroll

It is important that you understand your payroll tax responsibility as an employer, as a mistake in any part of the process can have disastrous consequences.

Common Payroll Tax Mistakes

Hiring even a single employee can seem like a crash course in human resources, and the obligations continue as long as you have employees working for your business. Whether a small or large business, payroll issues can sometimes be forgotten and result in violations. Common violations include:

• Misclassifying Workers
  Employers have different tax responsibilities and owe different benefits to their workers, depending on whether they are classified as employees or independent contractors. Employers are responsible for proving why an independent contractor classification is correct, a potentially complex task. A payroll attorney can help you determine the correct classifications for anyone employed by your company.It is important to note that intentionally misclassifying an employee is a felony in Florida and carries heavy penalties. Even an accidental misclassification will result in significant fines.
• Incorrectly Calculating Gross Wages
  An employee’s taxable income is impacted by many pre-tax deductions and withholding accounts. Common deductions include many 401(k) accounts, Flexible Spending Accounts (FSAs), life insurance, and child care expenses. Not accounting for these deductions properly can result in your business paying more than is required.
• Not Paying the Florida Reemployment Tax
  Florida is appealing to many entrepreneurs because a state income tax is not imposed on individuals. However, this does not mean that business owners are exempt from paying any taxes to the state. The first $7,000 a business makes each year is subject to the Florida Reemployment Tax, funds from which are deposited into the Unemployment Compensation Trust Fund.
• Failing to Abide by Tax Deadlines
  Taxes are due at different periods, depending on the nature of your business and tax liability. There may be semi-monthly, monthly, quarterly, and/or annual tax deadlines that you are responsible for keeping track of. Fines are often used as penalties when these deadlines are missed.

If you have been accused or charged with violating tax law, a Ponte Vedra payroll tax attorney can help you defend yourself. However, speaking with a tax attorney before any of these mistakes are made can prevent any need to defend yourself at all.

FAQs

Q: What Is a Payroll Tax Attorney?

A: A payroll tax attorney is an attorney who focuses on business and tax law. They have a strong understanding of accounting, finance, and taxation law and are often skilled in communication, critical thinking, and negotiation. Payroll tax attorneys can assist businesses through tax matters at the local, state, and federal levels. This representation can include representing your business if you are accused of breaking payroll tax law.

Q: What Is the Medicare and Social Security Tax Obligation?

A: Both employer and employees are responsible for paying FICA taxes, or the Medicare and Social Security tax. The Medicare tax rate is 1.45% of wages and the Social Security tax rate is 6.2% of wages, for a total of 7.65%. The employee’s portion is deducted from their paycheck, and the employer is responsible for paying their 7.65% as well.

Q: Can I Reduce My Payroll Taxes?

A: It is possible that your current payroll tax rate could be reduced  in Ponte Vedra, but it requires a thorough understanding of your taxable compensation and taxable employees. A knowledgeable payroll attorney can examine your business and ensure that you are paying the correct tax rate based on your employee classifications and other employee compensation.

Q: Are Accountants and Tax Attorneys the Same Thing?

A: Accountants and tax attorneys both have a deep understanding of tax law, but the two professions are distinctly different from each other. A CPA, or certified public accountant, is an accounting professional who handles tasks like bookkeeping, financial documents, and filing taxes each year. A tax attorney also works within tax law, but they handle litigation, negotiation, and the IRS tax code. Understanding which professional you need is vital if you are in need of tax-related services.

Payroll Tax Consultation

Understanding tax law can be difficult, especially when you consider all the regulations affecting your business at the local, state, and federal levels. TaxSmith, LLC, can help you navigate this complex area of law, especially if you are facing an investigation or have been charged criminally. We can help you create a legally compliant plan based on your unique business circumstances.

With decades of combined experience, the professionals at TaxSmith, LLC, stand ready to support you through your payroll tax questions and issues. We have a flexible schedule, with weekend and evening appointments, allowing us to be available for many within our community. If you need to speak with a payroll attorney, reach out to our office today.