Latest news with #payrolltax
Bloomberg
22-07-2025
- Business
- Bloomberg
Reeves' Tax Hike Deals Bigger-Than-Expected Hit to UK Businesses
A payroll tax hike on UK employers by Chancellor of the Exchequer Rachel Reeves is proving more costly than initially predicted, threatening to worsen the drag on the economy as businesses cut jobs to cope with the cost. The government generated £47.5 billion ($64.1 billion) from national insurance contributions from April through June, the first three months of the fiscal year, a £7.6 billion jump from a year earlier, data from the Office for National Statistics released Tuesday showed.
Forbes
22-06-2025
- Business
- Forbes
IRS Can And Does Assess This 100% Tax Penalty—Over And Over Again
Employees, Payroll Binder data finance report business with graph analysis in office. getty For anyone with employees, paying employment taxes is inevitable. You withhold taxes from employee pay, then send the money to the IRS. The taxes are withheld from wages and are supposed to be promptly paid to the government. This is trust fund money that belongs to the government, and no matter how good a reason the employer has for using the money for something else, the IRS is strict. If you are in business, it can be tempting to figure that you have to keep the rent paid and the supplies ordered, and that the IRS won't miss the payroll tax money if you just divert it temporarily. You never want to become delinquent in paying taxes, especially employment taxes. The IRS is vigorous in going after these payroll taxes. It is one reason that in cases where the IRS catches the problem early, the IRS may encourage use of a payroll service. If the payroll service automatically takes out and remits all the payroll taxes, the business won't have the discretion to divert the money, even briefly. When a tax shortfall occurs, the IRS will usually make personal assessments against all responsible persons who have ownership in or signature authority over the company and its payables. The IRS can assess a Trust Fund Recovery Assessment, also known as a 100-percent penalty, against every 'responsible person" under Section 6672(a). You can be liable even if have no knowledge the IRS is not being paid. If you're a responsible person, the IRS can pursue you personally if the company fails to pay. The 100% penalty equals the taxes not collected. The penalty can be assessed against multiple responsible persons, allowing the IRS to pursue them all to see who coughs up the money first. "Responsible" means officers, directors, and anyone who makes decisions about who to pay or has check signing authority. When multiple owners and signatories all face tax bills, they generally do their best to direct the IRS to someone else. Factual nuances matter in this kind of mud-wrestling, but so do legal maneuvering and just plain savvy. One responsible person may get stuck, while another may pay nothing. Meanwhile, the government will still try to collect from the company that withheld on the wages. And those IRS collection efforts can be serious. The IRS can move to collect, too, including via a levy on your bank accounts. But before a levy can be issued the IRS must provide notice and an opportunity for an administrative Collection Due Process hearing. A Collection Due Process hearing is only available for certain serious IRS collection notices. Among other things, it allows you the opportunity to ask for an installment agreement, an offer in compromise or another collection alternative. The IRS also looks for situations where one company owing payroll taxes seems to morph into a 'new' company, and there are special rules in the case of a 'predecessor' employer. That is, some procedural safeguards won't apply if you are a predecessor employer. Here's what the IRS evaluates to determine if one business is a predecessor of another: Does it have substantially the same owners and officers? Are the same individuals actively involved in running the business, regardless of whether they are officially listed as the owners/shareholders/officers? If the taxpayer's owners or shareholders are different, is there evidence they acquired the business in an arm's-length transaction for fair market value? Does the business provide substantially the same products, services, or functions as the prior business? Does the business have substantially the same customers as the prior business? Does the business have substantially the same assets as the prior business? Does the business have the same location/telephone number/fax number, etc. as the prior business? See IRC Section 6330(h). A business won't be treated as a predecessor if there was a genuine change in control and ownership, as where the business was acquired in an arm's-length transaction for fair market value, where the previous owners have ceased all involvement. The IRS's guidance lists examples of predecessor status and explains how to determine if a business requesting a Collection Due Process hearing for employment taxes is a 'predecessor.' There's no right to a Collection Due Process hearing to resolve the employment tax liabilities if you already had your chance.
ABC News
22-06-2025
- Business
- ABC News
Thousands of Victorian businesses to receive payroll tax relief next month
Tens of thousands of Victorian businesses are expected to pay less in tax, with payroll tax changes to be introduced next month. The change will see the payroll tax-free threshold rise from $900,000 to $1 million on July 1. Premier Jacinta Allan said it was expected that 28,000 businesses would be paying less, with an additional 6,000 businesses now exempt from the tax altogether. The changes to payroll tax have been earmarked since 2023, with the government raising the threshold first from $750,000 to $900,000 in July last year. The move comes amid forecasts of record high levels of debt, with the premier conceding there would be some recalculations required. "Yes, this does require an adjustment to our budget and our revenue, but this is an investment in business and jobs and growth," Ms Allan said. Payroll tax was projected to form the biggest source of revenue for the government in the 2025/26 financial year. Treasurer Jaclyn Symes said the affected businesses would save up to $14,500 each. "That has obviously been something that we've factored in over the forwards [projections]," Ms Symes said. Along with the changes to payroll tax, the government will also cut red tape in the planning system. On July 1, the government will scrap the requirement for businesses to apply for planning permits for liquor licensing. Business Wodonga chief executive Graham Jenkin said the permanent changes to licensing requirements had been expected for months but it would be great for regional restaurants and cafes. "This is great because Victoria really has more red tape than any other state government in in Australia, so anything that can reduce red tape which is an obstacle to doing business," Mr Jenkin said. "Business owners don't want to be spending all of their time doing reports." But Mr Jenkin said any changes to payroll tax would make no difference to small businesses who were still recovering from COVID. He said a further range of targeted measures needed to be implemented to help those who were running small-to-medium businesses in Victoria. "A lot of very small businesses will of course see no benefit from it," he said. "It could be a subsidy of council rates, [it] could be less of the Victorian emergency services and volunteers fund levy that small businesses will be forced to pay." Mr Jenkin said more training and development workshops in regional areas and more work in mental health for business owners struggling financially were also essential.
Associated Press
08-06-2025
- Business
- Associated Press
Protection Tax Supports Small Business Owners Facing Complex IRS Challenges
Protection Tax helps business owners resolve payroll tax, audits, and filings using verified data, legal strategy, and structured case protocols. LAS VEGAS, NV, UNITED STATES, June 8, 2025 / / -- As IRS enforcement intensifies on self-employed individuals and small businesses, Protection Tax services are helping business owners resolve back taxes, payroll issues, and late filings through a structured and legally compliant process. The Protection Tax small business program provides tailored support for entrepreneurs navigating IRS debt while managing day-to-day operations. Unlike individual taxpayers, small businesses often face multi-layered tax issues — including 941 payroll tax liabilities, 1099 misreporting, and business-related audits. The Protection Tax team is equipped to handle these complexities with credentialed professionals, IRS transcript access, and financial documentation reviews. Protection Tax business clients undergo a full compliance review at intake, where missed filings, unremitted payroll taxes, or overstated expenses are identified and addressed. The firm helps business owners correct past filings, avoid further penalties, and negotiate manageable IRS repayment structures — including installment agreements and hardship status, when eligible. The Protection Tax resolution process emphasizes legal accuracy, not temporary fixes. All recommendations are based on verified IRS data, not guesswork. This approach is especially valuable for business owners who previously relied on bookkeepers or unlicensed tax preparers and are now facing enforcement actions. Protection Tax compliance protocols also include audit defense preparation, revenue verification, and real-time monitoring of IRS transcripts. Whether it's a sole proprietorship or a multi-employee corporation, each case is reviewed according to IRS standards and matched with the correct relief strategy. With years of experience handling business tax cases, Protection Tax professionals understand how to balance IRS obligations with business continuity — giving clients a pathway to compliance without jeopardizing their operations. Protection Tax LLC Protection Tax +1 855-225-1040 email us here Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
