Idaho-based Instant Tax Solutions reviews the often confusing topic of payroll taxes and offers general information about their purpose.
Since, tax topics can be confusing, Instant Tax Solutions reviews IRS information on a regular basis for the benefit of their clients as well as the general public. Many new business owners want to know exactly what payroll taxes are, finds the Instant Tax Solutions Reviews Team – a group of employees dedicated to answering taxpayers’ questions. The simple answer is that payroll tax is money collected by the government from businesses that employee one or more individuals.
There are two types of payroll taxes. First are the “Withholding Taxes.” This is part of an employee’s paycheck that is withheld to pay his or her portion of certain government expenses. Social Security and Medicare are both funded by payroll withholding. A business must match a portion of the employee’s contribution, or face a fierce wrath by the IRS.
The second taxation method is a PAYG (Pay-As-You-Go). Findings by the Instant Tax Solutions Reviews Team suggest that these taxes are related to expenses incurred by the act of employing an individual. It does not matter, if the employees are hourly or salary.
The ITS Reviews Team is also often asked: What, exactly, is FICA and what happens if it is not paid? FICA, also known as the Federal Insurance Contributions Act, is the portion of an employee’s taxes that funds Medicare and Social Security. According to Instant Tax Solutions reviews of FICA, this dollar amount must be matched equally by the employer. Failure to submit these amounts on-time each quarter may result in severe punishment. The IRS takes swift action on businesses that fail to submit their contribution. Instant Tax Solutions reviews have found numerous cases where a business was shut down for this offense.
Unemployment Taxes are another fee incurred by employers. FUTA (the Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act) are used to protect an employee in case of job-loss, notes the Instant Tax Solutions Reviews Team. Unemployment income may be the only income some employees receive in case of a layoff or termination, so paying this tax is vital to the US economy.
On behalf of their clients, Instant Tax Solutions reviews all of the forms and paperwork necessary to ensure accurate tax amounts are paid. The firm encourages its clients to repay back payroll taxes swiftly, as for many business owners, their ultimate livelihood depends on it.
Instant Tax Solutions reviews IRS and Federal Payroll tax information for educational purposes only. The information contained in this article is deemed correct as of the time of publication. The Instant Tax Solutions Reviews Team remains up-to-date on the ever changing world of the IRS and encourages taxpayers to call the firm if they require immediate assistance.