Employers are required to manage their employees’ payroll taxes judiciously all year round. Those taxes include federal, state, local, Medicare, Social Security, and others. Depending on the type of industry the employer is in, the idea of withholding and reporting on taxes can seem daunting. After all, business owners might be experts in their own niche market but struggle to understand taxes.

At the same time, employers cannot afford to make mistakes with employee taxes by managing them on their own if they do not feel confident. Mistakes made over a period of years can eventually raise a flag with tax authorities, and you could end up needing a payroll tax lawyer to help you negotiate repayment options.

If you find yourself in trouble with your business’s payroll taxes and need help correcting the issue, contact the Law Office of David J. Harris. As a Pennsylvania tax lawyer with decades of experience, David has seen all kinds of tax issues and can handle your problem with the greatest finesse.

What Are Payroll Taxes?

Everyone with a job is familiar with the idea of payroll taxes, the money that is removed from each paycheck for federal, state, and local tax bodies. It may not have occurred to employees before, but that withheld money is actually taken by employers and paid to those sources for them. Everything an employee earns is subject to payroll taxes (in certain states), including salary, wages, and tips.

Social Security and Medicare taxes, as their name suggests, are taken from income and deposited into the federal government’s accounts for those social programs. Federal, state, and local taxes fund more general expenses for their respective government bodies. For example, state income taxes might be used to repave a state-maintained highway.

When to Call a Tax Lawyer

Withholding all the correct taxes from employees is not necessarily as easy as it sounds. People will pay more in taxes if they earn a higher salary, so employers must always stay on top of raises, as well as tax increases mandated by the government. When businesses are doing well and everyone is honest, there are usually no problems with paying the payroll taxes.

However, situations can arise that cause major tax issues that require a lawyer to correct. For instance, business owners may be unable to keep up with the laws requiring different taxes to be taken out of different incomes. Since 2013, federal law has required that individuals making $200,000 or more be charged an additional Medicare payroll tax of 0.9 percent. Business owners must be vigilant of this kind of issue. If they are not and end up making mistakes over a period of years, a tax lawyer can be massively beneficial in liaising with the proper tax authorities to figure out a repayment plan and get the business back on normal footing.

Expert Income Tax Lawyer Serving All of Pennsylvania

David J. Harris is a single practitioner who has been working in financial law for more than 35 years. He has seen a diverse range of clients through their tax struggles and helped them to establish clearer futures for themselves and their organizations.

When you need an income tax lawyer, you would be hard-pressed to find one with as much experience and know-how as David. There is no doubt that tax law can be complex, but you can trust David to take a look at your circumstances and devise the right solution.

Contact David today to set up a consultation and get back on track with your payroll taxes.