Orlando Payroll Tax Attorney

Orlando Payroll Tax Lawyer

Payroll taxes are a crucial part of an employer’s responsibilities, and violating the laws and regulations of these taxes can result in significant penalties. If an employer fails to withhold the proper taxes to pay to the state and federal government, the employer and their employees could face governmental action. If you are an employer or employee who is facing issues with payroll taxes, you need an Orlando payroll tax attorney.

Employees who are unaware of their responsibilities to pay payroll taxes are not exempt from those responsibilities. Employees and employers can face administrative, civil, or even criminal consequences for not paying the necessary payroll taxes. This can be overwhelming for many individuals, but it’s important to understand that you have options. You can negotiate alternate payments with the Internal Revenue Service (IRS) quickly before it takes collection actions.

Tax Smith Tax Attorneys: Supporting Orlando Businesses

Having late payroll taxes can be a minor mistake but can have disastrous consequences. You could end up with a significant tax debt, and with interests and penalties that are just as costly. At Tax Smith Tax Attorneys, we have worked for decades in tax law and are experienced in helping businesses and individuals navigate tax debt issues. The sooner you take action to address mistakes in your payroll, the better.

Our firm can help review mistakes made in payroll taxes, assess your tax liability, and determine the ideal method to settle your tax debt. We can help if you are being audited, investigated, or even charged with a criminal offense. Our team can help you protect your interests.

What Are Payroll Taxes in Orlando?

There is both an employer and an employee portion to Federal Insurance Contributions Act (FICA) taxes, including Social Security and Medicare taxes. The employer must pay their portion and withhold a portion of their employees’ paychecks to pay the employee portion of those taxes. However, if an employer does not withhold the employee portion of FICA taxes, then the employee becomes responsible for those payments.

These payments must be made every pay period, which depends on the size of the payroll. When payments are made late to the IRS, this results in late penalties and interest over time. Either an employer or an employee can find themselves facing these penalties, sometimes without realizing they have late payments. Late payroll tax payments can even result in criminal charges.

Employers have many payroll tax responsibilities, even if they do not withhold their employee’s portion of FICA taxes. These include:

• Florida re-employment taxes, or the state’s unemployment tax.
• Federal Unemployment Insurance Taxes (FUTA).
• The employer pays half of FICA Social Security and Medicare taxes.

It is crucial that employers and business owners in Orlando understand their tax responsibilities. An attorney can help business owners navigate their issues with payroll taxes. If you are being investigated for payroll tax violations, it is especially important that you work with a payroll tax attorney.

Possible Payroll Tax Violations

Some of the common violations of payroll tax law include:

1. Employee misclassification. Employees and independent contractors have different tax responsibilities, as independent contractors do not have taxes withheld from their wages and must make those payments themselves. If an employer misclassifies an employee as an independent contractor to avoid making these payroll tax payments, this is a violation.
2. Failing to pay state taxes. Many businesses gravitate toward Florida because of its lack of income tax. However, there are still payments that must be made to the state, including a corporate income tax and re-employment tax. Failure to pay these taxes is a violation.
3. Late payments. Not paying the IRS by the deadline can result in penalties and other consequences.

If you make other errors in your payroll taxes, this is a violation. An attorney can help you determine what your tax liability is.

FAQs

Q: Why Might You Seek the Help of a Payroll Tax Attorney Rather than a CPA?

A: You might want to seek the help of a payroll tax attorney rather than a CPA (certified public accountant) if you need support in tax law. Both attorneys and accountants have significant knowledge regarding taxes and tax law. Accountants focus on financial documentation and filing taxes, while attorneys focus on litigation and negotiation in tax law. If you are being audited, need legal advice, or need to negotiate with the IRS, an attorney will likely be more beneficial.

Q: How Much Does a Payroll Tax Attorney Cost in Florida?

A: The cost of a payroll tax attorney will vary significantly. Payroll tax attorneys are often needed to negotiate or even litigate tax issues on behalf of businesses, which typically means increased costs. The cost of an attorney relies on the type of tax service needed, the experience of an individual attorney, and the complexity of your unique case. Talk with an attorney about their pricing prior to hiring them.

Q: What Does a Payroll Tax Lawyer Do in Florida?

A: A payroll tax lawyer focuses on the intersection between tax law and business law and provides employers and business owners with legal support on payroll taxes. These attorneys understand how state, local, and federal tax laws affect businesses and how to file payroll taxes. Attorneys are necessary if an employer or business is accused of violating payroll tax law and can help with late payments, alternate payments, or negotiations with the IRS.

Q: How Much Does an Employer Pay in Payroll Taxes in Florida?

A: Employers pay a percentage of their payroll in Florida, including the state’s corporate income tax, federal income tax, FICA taxes, and unemployment and re-employment taxes. These payroll taxes often include the following:

• State corporate tax: 5.5%.
• Federal income tax: Depends on the size of the business and payroll.
• FICA taxes: 7.65%, with 6.2% Social Security and 1.45% Medicare.
• Federal unemployment tax: 6.0%.
• State re-employment tax: 2.7%.

These tax rates may change year to year, which are changes an attorney remains on top of.

Finding Payroll Taxes Legal Support in Orlando

At Tax Smith Tax Attorneys, we can help both employers and employees with payroll taxes and other tax needs. Contact our firm today and see how we can defend you against investigation and help your business be legally compliant.