Payroll Tax Penalties

In the area of payroll taxes, there really aren't too many opportunities for reducing your exposure to the taxes themselves. If you hire employees and pay them any kind of compensation, it's a given that you're going to have some payroll tax liabilities. Perhaps your biggest opportunity for realizing any kind of real savings is to make sure you tend to each of your obligations and avoid getting hit with stiff penalties.

Many of the potential payroll tax penalties are the same ones you'll find when you're dealing with other types of taxes. For example, there are both criminal and civil penalties for failing to timely file payroll tax returns or to timely deposit taxes you owe. However, there are a couple of penalties of which you should be particularly mindful as you deal with your payroll tax obligations: