Deduction of ER's share of payroll taxes on cash basis
Posted: 6-Sep-2017 3:29pm
The question------ when are the employer's share of payroll taxes (FICA, Medicare, unemployment) deductible by cash basis employer when such are not paid within the tax year of accrual.......or even two years later?
I have the situation of employer who has not paid his share of payroll taxes for over two years, and has delinquent income tax returns.
Looks to me like those taxes are deductible only at the point of payment..........but reflection says we have never had the problem, since previously late paying employers have always cleaned things up prior to the end of the year.
Therefore.......late payments have not been "highlighted"......and therefore the problem has not had to be considered.
In this case---- I "feel" like an examination will be coming on this person.......and I just don't want to be blind-sided.
Thanks.
I have the situation of employer who has not paid his share of payroll taxes for over two years, and has delinquent income tax returns.
Looks to me like those taxes are deductible only at the point of payment..........but reflection says we have never had the problem, since previously late paying employers have always cleaned things up prior to the end of the year.
Therefore.......late payments have not been "highlighted"......and therefore the problem has not had to be considered.
In this case---- I "feel" like an examination will be coming on this person.......and I just don't want to be blind-sided.
Thanks.