Relief for Businesses Using Independent Contractors: Section 530 is Still a Viable Option

This is the first article in a series dedicated to using Section 530 of the Revenue Act of 1978 as protection for businesses that have been using independent contractors, in good faith, but are now facing an IRS or State of Minnesota audit of that practice. Section 530 may be 34 years old, but it [...]

Can an In-Business Corporation Compromise its Employment Tax Obligations With The IRS?

Yes. An in-business corporation can compromise its outstanding employment tax obligations with the IRS. In past years, the IRS required that an Offer in Compromise (OIC) from an in-business corporation include not only its ability to pay, but also, the amount the IRS could collect from the responsible parties through the Trust Fund Recovery Penalty [...]

Minnesota Unemployment Insurance Tax – Paying Unemployment Benefits and MDEED Audits

This is the eleventh post in the Employment Tax Law series. This series is dedicated to presenting individuals, sole proprietorships, and small to large businesses with a basic understanding of employment taxes, including the risks and responsibilities associated with those taxes. When the MDEED receives an application from a former employee for unemployment benefits, the [...]

Minnesota Unemployment Insurance Tax – S Corporations and Special Rules

This is the tenth post in the Employment Tax Law series. This series is dedicated to presenting individuals, sole proprietorships, and small to large businesses with a basic understanding of employment taxes, including the risks and responsibilities associated with those taxes. All wages paid to the officer or shareholder of an S corporation are covered [...]

Minnesota Unemployment Insurance Tax – Covered and Non-Covered Employment

This is the ninth post in the Employment Tax Law series. This series is dedicated to presenting individuals, sole proprietorships, and small to large businesses with a basic understanding of employment taxes, including the risks and responsibilities associated with those taxes. Covered employment is when an employee performs services for an employer in return for [...]

Minnesota Unemployment Insurance Tax – Experience Rating and Buy-Downs

This is the eighth post in the Employment Tax Law series. This series is dedicated to presenting individuals, sole proprietorships, and small to large businesses with a basic understanding of employment taxes, including the risks and responsibilities associated with those taxes. For the first 48 months of paying wages, the MDEED will assign the new [...]

Introduction to Minnesota Unemployment Insurance Tax

This is the seventh post in the Employment Tax Law series. This series is dedicated to presenting individuals, sole proprietorships, and small to large businesses with a basic understanding of employment taxes, including the risks and responsibilities associated with those taxes. The Minnesota Unemployment Insurance Tax, often referred to as SUTA tax, provides funds for [...]

Federal Unemployment Tax Act Tax (FUTA Tax) – Exemptions and Special Rules

This is the sixth post in the Employment Tax Law series. This series is dedicated to presenting individuals, sole proprietorships, and small to large businesses with a basic understanding of employment taxes, including the risks and responsibilities associated with those taxes. An employer must pay FUTA tax if the employer paid wages of $1,500 or [...]

Introduction to Federal Unemployment Tax Act Tax (FUTA) and Form 940

This is the fifth post in the Employment Tax Law series. This series is dedicated to presenting individuals, sole proprietorships, and small to large businesses with a basic understanding of employment taxes, including the risks and responsibilities associated with those taxes. The FUTA tax provides funds for paying unemployment compensation to workers who have lost [...]

Penalties And Interest For Late Deposits, Late Filing, And Late Payment

This is the fourth post in the Employment Tax Law series. This series is dedicated to presenting individuals, sole proprietorships, and small to large businesses with a basic understanding of employment taxes, including the risks and responsibilities associated with those taxes. Deposit penalties occur when the taxpayer fails to make timely deposits, the timely deposits [...]

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