The Payroll deadline is fast approaching. Payroll Deadline is October 31st.
Are you a business owner or a signer on a the business bank account?
BEWARE: If so, did you know that you if you did not pay your Trust Fund Liability portion of the federal payroll tax (Medicare and Social Security Taxes), it can affect your personal credit?
This business tax liability can be assessed to you personally. This can affect not only the owners but also managers, employees, and anybody who has a decision making powers on business payment priorities.
If your company is struggling to pay its payroll taxes, you may be putting yourself and your company at a huge risk. Although some financial stresses seem to arise out of thin air, most of them can be foreseen if proper financial planning is set in motion. Financial planning will guide a business owner through all the ups and downs that business ownership can face.
Trust Fund Taxes
An employer is required to pay trust fund taxes to the IRS. An employer must withhold federal income and payroll taxes from their employees’ wages, which then are paid to the IRS, this payment is known as Trust Fund Taxes. If the trust fund taxes are not paid, serious consequences can fall upon a company and persons responsible for managing the payments. The IRS can impair the responsible person’s credit, prevent the responsible person from purchasing or selling, and apply a tax lien. To avoid severe repercussions, it is imperative at the very least to maintain current Trust Fund Personal Liability Tax payments. Payroll taxes are considered the government’s money and failure to pay is withholding of government money. This is not something that the IRS will take lightly.
Consequences of Trust Fund Tax Delinquency:
- Person responsible may be charged criminally.
- Wages garnished.
- Buying and selling of property will be disabled.
- Personal credit will be affected.
- Property liens will be applied
If you are facing hardships and need to get your company back on track, please call Rosillo & Associates before it is too late. Our financial professionals are waiting to help you.