Payroll Tax Compliance sounds like a lot of paperwork, doesn’t it?
But, before you scroll through thinking “My payroll manager can take care of it” and delegate, remember knowing the fundamentals are crucial for everyone. Think of it as your safety net for your business’s well-being.
Payroll tax compliance is the process of ensuring that your business pays the correct amount of taxes to the government on behalf of your employees. It is essential for small businesses to comply with payroll tax laws to avoid penalties, audits, and legal issues.
Annual Compliance Checklist:
Business Licences and Permits
Tax Compliance - Federal Income Tax, Social Security tax, and Medicare tax.
Employee Benefit Compliance
Data Security Compliance
Small businesses can avoid penalties and legal action by staying on top of these compliance areas.
According to the IRS, small businesses paid over $11 billion in penalties in 2019 for failing to comply with payroll tax laws. By following the checklist above, you can significantly reduce the risk of facing such fines and lawsuits.
Seek Professional Help
Payroll tax compliance is not something that you can afford to overlook or neglect as a small business owner. It is a vital part of your legal and financial responsibilities that can have a significant impact on your business performance and reputation.
If you’re unsure about the obligations, it’s necessary to seek professional help from experts in the business such as FPC!
We can keep your business out of trouble and your mind at ease.