Showing posts from December, 2015

A Helping Hand for Employers

  Did you know that 2/3 of all federal taxes collected, come from payroll?  These are the federal income, Social Security, and Medicare taxes, which by law, are withheld from every employees pay.  Regularly during the year, these taxes and what the employer adds, are sent into the government.  However, the IRS has noticed a disturbing trend and they are giving a helping hand to reverse this trend.   An increasing number of employers are taking these funds set aside for the government, and keeping them for other uses.  Doing so always leads to instant tax penalties along with interest.  In the past these deposits were not closely monitored, so when the IRS would notice an employer was behind and contacted them about it, they were already in a terrible situation.   The new program started to help avoid these pitfalls is call the Early Interaction Initiative .  It will actively watch patterns and deposits, highlighting payments that are late or reduced.  Those who stand out will rece