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If you are a business owner, chances are you have to pay payroll taxes. Even if you have a single employee, you need to have a payroll tax system set up to ensure you both pay your portion of the taxes. Every state has its own rules about payroll taxes and which party is responsible for which kind. You need to know about this so you know how much money to withhold from your employee(s).
When you need payroll tax help and relief in Colorado or anywhere in the U.S., turn to BC Tax. We can help resolve many small business tax-related issues, including payroll tax levies, business tax, sales tax debt, state tax debt relief and more.
How Payroll Taxes Work
Businesses that hire full- and part-time workers must withhold employment taxes from these workers’ paychecks. Required employment taxes include social security, excise and railroad retirement, if applicable. The employer must collect these funds on a regular schedule and remit the collected taxes to the federal government by specific and non-negotiable deadlines.
The employer collects the taxes and holds these funds in a trust, and by the due date, they are to release the funds from the trust to the federal government. Failure to remit these taxes may mean the government will assess a Trust Fund Recovery Penalty.