{"id":113,"date":"2019-03-28T07:05:26","date_gmt":"2019-03-28T07:05:26","guid":{"rendered":"http:\/\/www.rikardneal.com\/blog\/?p=113"},"modified":"2019-03-27T18:12:23","modified_gmt":"2019-03-27T18:12:23","slug":"dont-forget-you-are-responsible-for-payroll-taxes","status":"publish","type":"post","link":"https:\/\/www.rikardneal.com\/blog\/index.php\/2019\/03\/28\/dont-forget-you-are-responsible-for-payroll-taxes\/","title":{"rendered":"Don&#8217;t Forget &#8211; You are Responsible for Payroll Taxes"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-114 alignleft\" src=\"http:\/\/www.rikardneal.com\/blog\/wp-content\/uploads\/2019\/03\/payroll-new.jpg\" alt=\"Rikard &amp; Neal CPAs\" width=\"250\" height=\"167\" \/>Any business with employees must withhold money from its employees&#8217; paychecks for income and employment taxes, including Social Security and Medicare taxes (known as Federal Insurance Contributions Act taxes, or FICA), and forward that money to the government. A business that knowingly or unknowingly fails to remit these withheld taxes in a timely manner will find itself in trouble with the IRS.<\/p>\n<p>The IRS may levy a penalty, known as the trust fund recovery penalty, on individuals classified as &#8220;responsible persons.&#8221; The penalty is equal to 100% of the unpaid federal income and FICA taxes withheld from employees&#8217; pay.<\/p>\n<h3>Who&#8217;s a Responsible Person?<\/h3>\n<p>Any person who is responsible for collecting, accounting for, and paying over withheld taxes and who willfully fails to remit those taxes to the IRS is a responsible person who can be liable for the trust fund recovery penalty. A company&#8217;s officers and employees in charge of accounting functions could fall into this category. However, the IRS will take the facts and circumstances of each individual case into consideration.<\/p>\n<p>The IRS states that a responsible person may be:<\/p>\n<ul>\n<li>An officer or an employee of a corporation<\/li>\n<li>A member or employee of a partnership<\/li>\n<li>A corporate director or shareholder<\/li>\n<li>Another person with authority and control over funds to direct their disbursement<\/li>\n<li>Another corporation or third-party payer<\/li>\n<li>Payroll service providers<\/li>\n<\/ul>\n<p>The IRS will target any person who has significant influence over whether certain bills or creditors should be paid or is responsible for day-to-day financial management.<\/p>\n<h3>Working With the IRS<\/h3>\n<p>If your responsibilities make you a &#8220;responsible person,&#8221; then you must make certain that all payroll taxes are being correctly withheld and remitted in a timely manner. Talk to a tax advisor if you need to know more about the requirements.<\/p>\n<p><a href=\"mailto:ed@rikardneal.com\">Send us an e-mail\u00a0<\/a>or call Rikard &amp; Neal CPAs today at\u00a0901-685-9411\u00a0. Or,\u00a0<a href=\"https:\/\/www.rikardneal.com\/consultation.htm\">request a free consultation<\/a>\u00a0to discuss your business needs with an experienced CPA.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Any business with employees must withhold money from its employees&#8217; paychecks for income and employment taxes, including Social Security and Medicare taxes (known as Federal Insurance Contributions Act taxes, or FICA), and forward that money to the government. A business that knowingly or unknowingly fails to remit these withheld taxes in a timely manner will [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-113","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business-best-practices","7":"entry"},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=113"}],"version-history":[{"count":1,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/113\/revisions"}],"predecessor-version":[{"id":115,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/113\/revisions\/115"}],"wp:attachment":[{"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rikardneal.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}