Things You Need To Know About Unpaid Payroll Tax Penalties

The right definition of Unpaid payroll tax penalties stands for the fee assessed by the IRS internal Revenue Service on the account of employers when they fail to report, collect, and remit payroll taxes.

Here are some penalties for Unpaid Payroll Taxes:

There is a long list of IRS payroll tax penalties and requirements for the failure to catch with the duties in IRS Publication 155, but few of them are very common than others. The most arising missteps are for form 941 taxes that is FICA taxes and withholdings, but some register to similar forms.

The failure that files form 941 and alike forms results in a penalty of 2 per cent if you are late for just 5 days late, in case you are delayed from six to 15 days then the penalty reaches five per cent or if it is delayed for 16 days and more or within the first ten days when the Notice arise for the first time from IRS then payment of 10 per cent is made.

When you get the First notice from IRS about the due payments and it’s been more than 10 days since you made any payments the penalty rises to 15 per cent.

Failure to get the information gets back to employees with forms like W-2 and forms of 1099-MISC to other payees also means penalties from the IRS.

TFRP (trust fund recovery penalty) is charged on failure to pay payroll taxes when the payment gets due.

Here are the types of payroll taxes:

  • Medicare and social security taxes.
  • Federal income taxes.
  • Federal unemployment taxes.
  • State unemployment taxes.

Now that you know enough about what the penalties of unpaid payroll taxes are, make sure that you cover all your dues sooner.