Federal Payroll Tax: What the IRS Expects from Business Owners

federal payroll tax

If you have employees, you are liable for federal payroll taxes. Some taxes are withheld from your employee’s wages, some you must pay yourself.

The Internal Revenue Service, or IRS, administers payroll taxes as part of its responsibilities. Remaining in compliance means understanding how and when payroll taxes are calculated, filed, and paid.

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Explanation and Penalties of Sales Tax Fraud in California

Explanation and Penalties of Sales Tax Fraud in California

Sales tax is added to almost every piece of merchandise sold in the State of California. It adds to the city, county, and state coffers to help pay for services everyone enjoys.

Sales tax can also be a lure into illegal activity. Sometimes it is not intentional. A retailer makes an error that can be attributed to complexity of the tax code. This is merely negligence.

Other times, it is very intentional. Then it becomes sales tax fraud.

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What Are the California Payroll Tax Penalties If I Don’t Pay?

what_are_the_california_payroll_tax_penalties.jpg

As an employer, you are obliged to file payroll tax returns and pay payroll taxes. While the obligation can feel burdensome, especially when times are tough and cash flow is slow, this is obligation that you must never delay.  Substantial penalties may accrue to any employer who doesn’t file correctly, leaving you in a far worse situation than before.

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The CDTFA and California Tax Liens

BOE and California Tax Liens

The consequences of falling behind on your taxes are difficult for anyone, but when we are talking about businesses, sales taxes, and the California Department of Tax and Fee Administration (CDTFA), the results can be devastating. The CDTFA is particularly aggressive about investigating and pursuing unpaid sales taxes, and will often demand immediate payment of any liability, no matter what other types of financial responsibilities or consequences the business may be facing. One of the most powerful “weapons” in the CDTFA’s arsenal of collection tactics is the tax lien. Understanding how liens work, why they happen, and what to do if one is recorded against you is important in order to protect your business during times of financial difficulty.

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Who Can Get a California Sales Tax Exemption?

california sales tax exemption

If you own a business which produces tangible goods, then you are obligated to pay sales tax to the Board of Equalization. There are, however, a number of exemptions to this rule, some of which apply to various types of goods and others which attach to certain buyers.  It is important to understand which types of business can get a partial or full sales tax exemption and the consequences for improperly failing to pay sales or use tax. Sales tax is a complex area of law, with a huge range of exemptions that apply to various goods or types of sellers. Penalties for failing to pay sales tax are steep, so a little knowledge now can keep you from a huge liability later.

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How to Handle an EDD Lien: Notification, Contributions, and Penalties

how to handle an EDD lien

As a business owner, you are responsible for paying payroll taxes and filing periodic reports in accordance with your obligations. If you do not do so, you risk having a lien recorded against your property by the EDD. The details of tax liens are confusing to many people, but it’s important to understand what a lien is, why they are issued, and what your options are to avoid or discharge the lien.

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Franchise Tax Board (FTB) Offer in Compromise: California Offer in Compromise 101

franchise tax board (ftb) offer in compromise

It is a problem that many individuals or business owners in California have faced. You may have had a difficult year financially, and when tax time rolls around you discover that you owe more to the California Franchise Tax Board (FTB) than you can afford to pay. If this is your situation, there is light at the end of the tunnel. The FTB is willing to work with cooperative delinquent taxpayers to come up with a solution that works for both parties. One of these solutions is the offer in compromise (OIC). Could it be the right choice for you? You need to understand what is involved, how it can help your situation, whether you are eligible and how to apply before you can make a decision.

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California Sales Tax Audit: Everything You Need to Know

sales tax audits

Facing a sales tax audit is an intense time for any business. Even if you are sure that your bookkeeping and records are impeccable, the painstaking process of proving your honesty takes up a lot of time and resources, and hosting an auditor as they comb through your books is always a stressful prospect.

Most California businesses will deal with a sales tax audit at some point, and understanding why and when sales tax audits happen and what to expect is the best way to be prepared when your number comes up.

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Am I Going to Be Hit With an Estimated Tax Payments Penalty?

Mistakes can be costly if left unchecked

For many people, income tax withholding is something that happens automatically: you indicate your tax withholding rate to your employer on a W-4 form for federal taxes and a DE 4 form for California, and the taxes are taken out before you even see your paycheck. If your employer withholds at the correct rate, chance are you’ll end up with a nice refund at tax time.

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