What is the penalty for not withholding employee taxes (both income and FICA)?
I think I read 0.5% of the owed amount per month?
I do plan to pay this amount when I file in April. Is there any legal trouble for this?
Penalty for not withholding s corp quarterly taxes
byu/Turalterex intax
Posted by Turalterex
2 Comments
S corps don’t pay any federal taxes so, what are you really asking about?
1) Individual Federal Taxes?
2) State S – corp taxes, obviously depends on the state?
3) State personal taxes?
Failure to properly remit FICA is a serious offense. The penalties are much steeper than 0.5% per month, and there can be criminal charges filed … though extremely unlikely for a one-person S Corp, if that’s what you are.
See this ADP article for a start:
[https://www.adp.com/resources/articles-and-insights/articles/p/payroll-tax-penalties.aspx](https://www.adp.com/resources/articles-and-insights/articles/p/payroll-tax-penalties.aspx)
How are you running your payroll? By hand? Any payroll provider should be collecting and remitting this for you.