Employee Payroll Taxes
Employee Payroll Taxes
- Federal, state, and, in some cities, even local Employee Payroll Taxes
(income withholding taxes; social security taxes; federal unemployment taxes;
and state unemployment taxes) are due quarterly or monthly if you have any
employees. Some of these payroll taxes are withheld from your employee's
earnings and others are contributed by your corporation as the employer above
and beyond your employee's compensation.
Your employee tax obligations as the President of your corporation can be enormous. As a newer corporation overlooking the tax ramifications of adding just one more employee can result in a failure to timely change from quarterly payroll tax deposits to monthly deposits. Furthermore, you can be held civilly and criminally responsible for the failure to timely pay or deposit your corporation's employment taxes. This liability can apply even if your company paid the proper sums to its payroll service which then failed to pay or deposit the money to the government. For more information go to the IRS page entitled Employment Taxes for Small Businesses located at (http://www.irs.gov/businesses/small/content/0,,id=98942,00.html).
Disclaimer: The foregoing is intended to provide general information and may not be suitable in specific instances. The glossary information is not intended to be exhaustive, but rather to illustrate typical considerations. The material is provided with the understanding that it is not legal, accounting, tax or any other professional advice.
Copyright © 2003-2010 LawVantage.com, LLC. All rights reserved.
Important LawVantage.com, LLC and its website, CorporateBoardMinutes.com, do not render any legal, accounting or other consulting advice.
For legal advice, you should always consult with a qualified attorney-at-law.
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Your employee tax obligations as the President of your corporation can be enormous. As a newer corporation overlooking the tax ramifications of adding just one more employee can result in a failure to timely change from quarterly payroll tax deposits to monthly deposits. Furthermore, you can be held civilly and criminally responsible for the failure to timely pay or deposit your corporation's employment taxes. This liability can apply even if your company paid the proper sums to its payroll service which then failed to pay or deposit the money to the government. For more information go to the IRS page entitled Employment Taxes for Small Businesses located at (http://www.irs.gov/businesses/small/content/0,,id=98942,00.html).
Disclaimer: The foregoing is intended to provide general information and may not be suitable in specific instances. The glossary information is not intended to be exhaustive, but rather to illustrate typical considerations. The material is provided with the understanding that it is not legal, accounting, tax or any other professional advice.
Copyright © 2003-2010 LawVantage.com, LLC. All rights reserved.
Important LawVantage.com, LLC and its website, CorporateBoardMinutes.com, do not render any legal, accounting or other consulting advice.
For legal advice, you should always consult with a qualified attorney-at-law.
Website development by
Vine Design.