Handling Payroll Taxes: What to Know and How a Payroll Tax Attorney Can Help

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Handling Payroll Taxes

In the world of business, there is one inevitable obligation that every employer must cope with – payroll taxes. Fulfilling this mandatory responsibility is not only an essential legal requirement but also a vital aspect of maintaining your business’s financial health. Payroll taxes may seem daunting to some, but they need not be an insurmountable challenge.

Understanding the rules and regulations surrounding payroll taxes can make life easier for all parties involved. In this blog post, we will delve into the essentials of payroll taxes, why they need your utmost attention, and how an experienced payroll tax attorney can offer guidance and support to navigate this complex aspect of running a business.

No matter the size of your organization, whenever you employ someone, you will need to be well-versed in payroll tax requirements. There are multiple components to payroll taxes, as they cover the myriad of taxes withheld from an employee’s paycheck, including federal and state income taxes, Social Security and Medicare contributions, and various unemployment taxes. Employers must deduct these taxes from their employees’ paychecks and remit the payments to the appropriate tax agencies.

Failure to do so can lead to a plethora of consequences, including back taxes, owing taxes, and potential legal issues. As a result, companies must ensure that they are compliant with payroll tax requirements and have a proper system in place to manage these obligations.

Considering the intricacies of tax laws and the ever-evolving regulations, it is understandable if you may find yourself overwhelmed with payroll tax compliance. However, here’s the good news – with the right knowledge and expert guidance from a payroll tax attorney, you can turn this seemingly arduous task into a simpler and more manageable process.

Hiring a payroll tax attorney can save you valuable time opening up windows to concentrate on what matters – growing your business and attending to your staff’s needs.

In this post, you’ll gain a deeper insight into payroll taxes, what they entail, the importance of maintaining compliance, and how a knowledgeable payroll tax attorney can be your savior when tackling IRS issues related to payroll taxes. Don’t let payroll taxes become a roadblock in your business’s path to success – read on and empower yourself with practical advice and info that you can use to keep your business on the right track.

Understanding Payroll Taxes: The Basics

Payroll taxes generally consist of three primary components: income taxes, FICA taxes (Social Security and Medicare), and unemployment taxes. These taxes are crucial for both employers and employees because they fund essential social programs like Social Security, Medicare, and Unemployment Insurance. As an employer, you must withhold a portion of your employees’ salaries and wages to cover these taxes and subsequently transmit the funds to the relevant government agencies.

  • Income Taxes

    Federal and state income taxes are withheld from each employee’s paycheck. The amount withheld is determined by the employee’s tax bracket, the standard tax deduction, and any exemptions they may qualify for.

  • FICA Taxes (Social Security and Medicare)

    FICA taxes are payroll taxes mandated by the Federal Insurance Contributions Act (FICA) for both employees and employers. The primary components of FICA taxes include Social Security and Medicare taxes. Employers must withhold 6.2% of Social Security tax (up to a specific wage base) and 1.45% of Medicare tax from an employee’s wages. Employers must also contribute a matching amount for both Social Security and Medicare.

  • Unemployment Taxes

    Unemployment taxes consist of both federal and state unemployment taxes. These taxes provide temporary income to workers who have lost their jobs. The Federal Unemployment Tax Act (FUTA) requires that employers pay a 6% tax on the first $7,000 of each employee’s income. State unemployment taxes vary depending on your location and your company’s size and history.

The Importance of Payroll Tax Compliance

Maintaining proper payroll tax compliance is essential for several reasons:

  • Avoid Legal Issues and Penalties: Failure to comply with payroll tax regulations can result in heavy penalties and legal troubles. Fines can range from a few hundred dollars to thousands, depending on the severity of the infraction. Additionally, the IRS can hold employers personally accountable for unpaid taxes and impose liens on their property.
  • Ensure Smooth Operations: Adhering to payroll tax requirements helps streamline your company’s operations, ensuring that your employees are paid accurately and on time. By maintaining compliance, you create a reliable system that promotes trust and loyalty amongst your employees.
  • Boost Business Reputation: A company with a history of payroll tax compliance is viewed positively by potential partners, investors, and customers. Demonstrating your commitment to ethical practices strengthens your business’s reputation and increases the chances of success.

How a Payroll Tax Attorney Can Help

Navigating the complex world of payroll taxes can be a formidable task. With ever-changing tax laws and regulations, it is crucial to have an expert by your side. A skilled payroll tax attorney can offer the following benefits to your business:

  • Expert Advice and Guidance

    A payroll tax attorney can provide in-depth knowledge of federal, state, and local tax laws, ensuring that your business stays compliant and up-to-date with new regulations. With their expertise, they can help you make sense of complicated tax legislation and interpret the nuances that may impact your operations.

  • Audit and Dispute Representation

    In the event of a payroll tax audit or dispute, having a payroll tax attorney can be invaluable. They will represent your interests during audits and negotiations, helping you prepare the necessary documentation and advocating on your behalf when dealing with the IRS or state tax agencies.

  • Penalty Reduction and Resolutions

    If your business is facing penalties due to payroll tax issues, a payroll tax attorney can help negotiate with the tax authorities on your behalf. They can assist in devising a penalty reduction strategy or establish a payment plan, enabling your business to recover from tax debts smoothly.

  • Long-term Compliance Strategies

    A payroll tax attorney can help you develop robust, long-term strategies for maintaining payroll tax compliance. They can work with you to implement systems and processes that ensure accurate and timely calculations, withholdings, and filings—minimizing the risk of future issues.


Dealing with payroll taxes can be a complex and intimidating aspect of running a business. However, by understanding the basic components of payroll taxes, recognizing the importance of compliance, and enlisting the assistance of a knowledgeable payroll tax attorney, you can alleviate much of the stress and potential pitfalls associated with handling payroll taxes. Don’t let payroll tax issues derail your business’s success—invest in expert guidance and support and reap the benefits of a well-managed and compliant operation.

Are you struggling to navigate the complexities of payroll tax compliance? Let Segal, Cohen & Landis help you stay on track. Our expert payroll tax lawyers can guide you through every step of the process and put your business on the path to success. Contact us today to schedule a free consultation and learn how we can help you achieve compliance, reduce your tax liabilities, and protect your business’s financial future. With our help, you can rest easy knowing that your payroll taxes are in good hands.

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Segal, Cohen & Landis will help you successfully resolve challenging federal and state tax problems including back taxes, audits, wage garnishments, and levies. We will negotiate your offer in compromise or installment agreement. Our IRS tax attorneys will take you through the resolution process to achieve your best possible outcome.