Unpaid payroll taxes can be a disaster for your company. It can also result in personal liability, as the IRS may seize your assets.
But, there are actions you can take to help minimize problems:
- Get a trusted, bonded payroll service: Stick with a solid company. Also, make sure it is bonded. This means that — in the event of a missed payment or filing — you will not have to pay the penalty or interest.
- Double-check: Even when you use a payroll service, verify the payments and the filings. It’s also a good idea to keep your own records.
- Watch your cash flow: In other words, make sure you set aside enough money — every month — to meet your payroll. If you expect to run short, then cut costs or even layoff employees.
Ok, suppose you haven’t paid the taxes and the IRS has sent a certified letter? You need to act quickly and find a qualified professional who knows how to handle these problems. He or she can evaluate the situation and take actions to try to minimize the damage — such as with installment plans, offers in compromise, penalty abatements and savvy negotiations.
Temporary political workers for election day only.
Should they get 1099s?
Some were paid through recruiters that were paid one check(over $2,000)and dispersed them accordingly.
The recruiters should get 1099s, but how is that income reported to IRS?
For those who are paid $600 or more, you need to file a 1099-MISC. The contractor needs to get one by January 31. But the deadline to send the IRS is not until March 1.
Here is the link to the form:
http://www.irs.gov/pub/irs-pdf/f1099msc.pdf
For this:
Copy A: this is what you send to the IRS
Copy 1: you send this to the state tax department
Copy B, Copy 2 : you send these to the contractor
Copy C: you keep these for your records