Setup Withholding Tax Account

Overview

Employers must be aware of the responsibilities that come with hiring employees. Every employer must take the steps necessary to ensure that their employee’s paychecks are correct and if applicable, a portion is withheld for state taxes. Let LicenseLogix help your business get set up with a withholding tax account in every state you work in. Our experts are familiar with this process in each state and can ensure that your payroll is set up correctly.

Background

Withholding tax is money that an employer withholds from an employee’s paycheck. The employer must setup an account with the state department of taxation that will collect monies that are withheld. The amount withheld is applied to the individual’s income tax liability. Generally, an employer must set up a withholding tax account in each state they have an employee working for the business and in each state that an employee resides. State withholding account applications are usually processed by the state department of taxation. Most states do not charge a state fee for this application.

Ramifications of non-compliance

Employers may face fines for failure to set up a proper or timely withholding account. Fines can either be assessed by amount of taxes that would have been required to withhold or a flat fee. Employers may also be held personally liable if their business does not pay for withholding liability.

How we help your business:

  1. We streamline the overwhelming task of becoming properly licensed. Our licensing specialists will determine the necessary registrations, compile applications and make sure you business receives the license or identification number.
  2. We ensure your business is in full compliance by correctly setting up your payroll tax registration the first time.
  3. We save you money by allowing your employees to focus on your core business purpose. Let LicenseLogix focus on what we do best, getting your business licensed.


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