What may happen if I don't pay the taxes?
Failure to report domestic wages paid after January 1, 1995 compromises the validity of your personal income tax return. These taxes are included on your personal federal income tax return, and you sign/submit this tax return under penalties of perjury. If caught in an audit, this can be a felony offense.
Additionally, there is no statue of limitations on the failure to report and remit federal payroll taxes. You are most likely to be "caught" when a former employee files for unemployment or social security benefits. Employers are generally required to pay back taxes, penalties and interest charges, and usually professional fees for an accountant and/or attorney. HomeWork Solutions can assist employers becoming current with back tax obligations.
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