End of Year - Remember Tax Obligations and Vigilance Over Your Business

In a previous post, we addressed how vigilant we must be from employment theft. In one or the first posts, we also mentioned how payroll taxes are NOT an option.

As we conclude 2015, we need to remind ourselves to commit the resources to make sure our taxes are correct, paid, submitted, what ever it takes. As an example, payroll taxes are considered by the taxing authorities as “trust money.” This means that although you brought in money from your customers/clients, your employee payroll obligations are first. Thus, to the extent you are supposed to withhold the taxes for your employees… the money from your customers is not yours.

As such, should you as an employer omit the withholding payments in full, the IRS can look upon it as theft. Now you have more than a tax problem, you could have a big criminal problem. Be open and up front with your accountant and your hated lawyer and do not let this situation happen to you!

Further, as this is the season, employees can feel the added pressure to bring “home the bacon.” Again, please remind you to be vigilant and not let the “bacon” be your bacon. It may be a good idea to read the actual check books; original bank statements; registers, reconciliation statements yourself; regardless of the time commitment.

Be careful out there and Happy New Year!