As an employer, you’re responsible for paying payroll taxes on your employees. Typically, these taxes are due quarterly, which can make it easy to miss a payment. Some origins for payroll tax debt can be if an employer borrows from a payroll account to cover other expenses, or they may forget to withhold or deposit taxes, or they have dealt with some form of a natural disaster like flooding or a fire. While you may have a good explanation for the missed payment, the IRS upholds their due dates in a strict manner and will begin charging penalties on day one, raising them up to 15% of your balance due. In addition to these penalties, they will also charge between 3%-6% interest, which can really add up on a delinquent payroll deposit account. Once the debt has been fully assessed by the IRS, they will actively pursue collection and become aggressive in their methods if you do not respond to their notices, and eventually will place liens or levies on your accounts. The best way to avoid this is to withhold the correct amount of payroll taxes, place them in account that you use only for that purpose, and make the payments on time.
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