A Short Explanation of the IRS Payroll Tax

June 16, 2012 by  Filed under: Taxes 

IRS stands for the Internal Revenue Service which is obliged to collect taxes and is also responsible for the appropriate procedures as well as implementing the rules and regulations of the Internal Revenue Code, while the Payroll Tax commonly involves two separate types of taxes, the so-called withholding tax and the tax that employer directly pays from his own resources and is related to specific working position.

Generally the payroll taxes shouldn’t be confused for income taxes, in United States taxation regulations these are two different things while they are both thought of as the “trust fund taxes” due to the fact that the employers hold the deducted funds for the remittance later on. Experts say that the exact detailed definition of taxes is very important, even crucial as most of them are federal level taxes, like the IRS Payroll Tax and similar revenue-based taxations. The Internal Revenue Service agency has enabled for Americans to e-fill the tax forms for free, and research has shown that around 65% of tax returns are filed in via electronic filing.

The IRS is a highly specialized agency with various departments, like LB&I (Large Business and International) department or IRS CID which stands for the Criminal Investigation Division of the IRS, or a special office referred to as the “Taxpayer Advocate Service” which is an IRS department that assists taxpayers in the process of possible disputes with the agency and identifies possible insider processing problems in the IRS. The Internal Revenue Code is a part of the Federal statutory law of the United States and covers taxation regulations from excise taxes, gift taxation and the estate taxation, to the IRS Payroll Tax and income tax.

First section of the IRC imposes the Federal Income Tax on the taxable income of United States residents and citizens, as well as of trusts and of various estates while the corporate income tax regulations are imposed by the 11th section of the Code. The Internal Revenue Code is organized by topics and divided into logical sections following the same rule, IRS Payroll Tax being one of the fundamental taxations, next to the income tax and Social Security and Medicare taxes. The payroll taxes in the United States are estimated and imposed by the federal government and present a cost to the employers and in general the jurisdictions require annual if not even quarterly reports.

In detail, the IRS Payroll Tax in the United States includes funding of the Medicare and Social Security because the employers levy them in proportions to the salaries, but this is a part known as “withholding tax” or “pay as you earn” tax which covers income tax and the contributions for the Social Security in advance. Different countries world-wide have taxation regulations set differently, but the taxes are a well known global “evil”. Failing to pay the taxes generally results in automatic penalties that range from approximately 2 to 10% of initial value of the taxation, but penalties vary greatly world-wide. It is advisable to be precise and responsible and pay the IRS Payroll Tax as it is required by the government to avoid any possible complications.

Taxsolutionsnetwork.com has been assisting businesses with IRS Payroll Tax and IRS Tax Settlement nationwide.

Article Source:
http://EzineArticles.com/?expert=Tom_Junn

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