Tampa Payroll Tax Attorney

Tampa Payroll Tax Lawyer

Employers have many responsibilities in the course of running their business, including paying state and federal payroll taxes. Improperly withholding these taxes or failing to deposit them on time can lead to serious penalties by state and federal tax agencies. If you face a payroll tax violation or want to successfully navigate filling these taxes, a Tampa IRS tax lawyers can help.

Payroll violations can result in fines, penalties, and even criminal consequences for employers. These consequences can even affect employees who were unaware of their own responsibility to pay portions of payroll taxes. While this can be overwhelming, it is crucial that you take action to address these issues rather than ignore them. Your attorney can help you take the right steps after a violation.

Tax Smith Tax Attorneys: Payroll Tax Support for Tampa Businesses

Payroll tax violations are common, but that does not make their penalties minor. The IRS (Internal Revenue Service) can conduct investigations or audits to determine discrepancies, and discrepancies can result in charges. During these investigatory processes, you need an attorney by your side.

Tax Smith Tax Attorneys can help. We can represent you during an audit, defend you against charges, and help you find solutions for your accumulated tax debt. Our team has combined decades of tax law experience, and we use that knowledge to support you as an employer or an employee. The sooner you begin working with our team, the earlier and more effectively we can address your tax debt and defend your interests.

Understanding Tampa Payroll Taxes

Payroll taxes are payments made by employers each pay period to cover the following taxes:

1. The employer half of Federal Insurance Contributions Act (FICA) taxes, including both Medicare and Social Security taxes
2. Federal Unemployment Insurance Taxes (FUTA)
3. Florida reemployment taxes, which is the state’s unemployment tax

An employer must pay these taxes to the IRS on a schedule that relies on the size of their business and payroll.

Employees are responsible for their half of FICA taxes. Employers pay their portion and can withhold the employee’s portion from their paycheck. However, if the employer does not withhold the FICA taxes, then the employee must do so. Failure can result in additional penalties, interests, and potential civil or criminal penalties.

Both employers and employees must be aware of their responsibilities for payroll taxes. If you are a business owner who needs support navigating your payroll tax requirements, a payroll tax attorney can help you navigate filing taxes and address any payroll violations.

What Payroll Tax Violations Are Common?

Payroll tax violations can be committed by small businesses and large corporations. Some common violations in Tampa include:

1. Employee Misclassification: Employers have different tax responsibilities for employees than they do for independent contractors. Employers are not responsible for withholding payroll taxes for independent contractors. However, if employers misclassify employees as independent contractors to avoid this responsibility, this is a violation.
2. Late Payments: Employer payroll taxes are due at different points and may be required monthly, semi-monthly, quarterly, or at other pay periods. Failing to make these deposits on time can result in monetary penalties that must be paid or can result in larger violations.
3. Failing to Pay State Taxes: Florida does not have a state income tax, which is why many small businesses find the state appealing to start their own companies. Florida, however, does have other taxes that employers must pay, such as the corporate income tax and the reemployment tax. Failing to pay these state taxes can result in significant penalties. If you’re facing issues with state tax compliance, consulting a state tax attorney in Tampa can be invaluable.

These errors are violations, and it’s important to address them quickly. An attorney can help you navigate these issues but can also provide support as you file payroll taxes, which may avoid these errors in the first place.

FAQs About Tampa, FL Payroll Tax Law

Is it Legal for an Employer to Deduct Money from a Paycheck in Florida?

It is legal for an employer to deduct money from a paycheck in Florida, as long as there are legal deductions, such as withholding federal income taxes, and state and federal unemployment taxes.

Other deductions can be made if the employee agrees to them, such as for health insurance costs or employee benefits. However, any deductions that are not for taxes must be agreed on by both parties. Employers may also deduct from a paycheck if they are ordered to do so by the court on behalf of a creditor.

What Are the Payroll Tax Laws in Florida?

The payroll tax laws in Florida require employers and employees to pay their half of FICA taxes to the federal government, which includes both Social Security and Medicare payments. The current total of FICA withholding is 12.9%, with 7.45% paid by the employee and 7.45% paid by the employer. The employer and employee each pay a Medicare rate of 1.45% and a 6.2% Social Security rate. Employers must also pay state and federal unemployment taxes.

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

You might seek the support of a payroll tax attorney instead of a CPA (certified public accountant) if the payroll tax help and advice you need is directly related to tax law. CPAs and attorneys both have significant training and knowledge about tax codes, but attorneys are able to give legal advice. A CPA focuses on bookkeeping, filing taxes, and documenting financial information. Attorneys have more focus on litigation and negotiation with the IRS and can give you legal advice about your payroll taxes.

How Much is the Employer Payroll Tax in Florida?

The employer payroll tax in Florida is a percentage of the employer’s payroll, which does not include a state income tax in Florida. Payroll taxes include several federal and state deductions, including:

• Federal income taxes, which rely on the size of a business and its payroll
• State corporate taxes, which are 5.5%
• FICA taxes, which are 7.65%, 1.45% for Medicare, and 6.2% for Social Security
• Federal unemployment taxes, which are 6.0%
• State reemployment states, which are 2.7%

Managing Payroll Taxes and Liabilities With Tax Smith Tax Attorneys

Tax Smith Tax Attorneys is proud to support businesses in our communities. If you are dealing with a payroll tax violation, or wish to avoid them in the future, contact our firm. We can help you gather evidence to protect your interests or negotiate a settlement for your tax debt.