Withholding Tax Returns
Before Understanding Withholding Tax Returns let’s understand the basic concept of withholding of tax implies that tax should be deducted before the income is transferred. The tax withholding ensures that the liability of the person to whom income belongs has been majorly fulfilled. You can understand withholding tax as a portion of your income would be deducted and paid to the government, which you would have paid at the end of the year as a tax payment.
Withholding of tax is not a simple process; you must know various provisions and rates. EZCorporates is there to assist you in this. Contact us to know where and how many deductions you have to make on payments.
Rates and events: The tax laws prescribe the events, where you must withhold the tax before making the payments. Payments such as:
- Salaries or wages to employees
- Payments to non-residents
attracts provisions of tax withholding. But you must know the rates at which you should deduct the tax and when should you make such a deduction. If you are an employer or even running a small business, you should be aware of the provisions of withholding tax to avoid paying penalties.
Book an appointment on call/email to better understand the withholding of tax.
Filing returns: The liability of the person withholding the tax does not end after deduction; it starts from there. You have to file quarterly returns in the prescribed form giving details about all the deductions made in the quarter. The return to be filed is not very easy to prepare; you must report all the data accurately and completely. Otherwise, the liability of paying penalty will be yours, not of the deductee.
At EZCorporates, we have experienced members who can handle your work efficiently. Subscribe to our services to ensure that the returns are accurate and complete; this will save your time and money.
Payment of taxes: The liability of payment of tax withhold arises even before the filing of returns. You must make sure that the correct amount is deducted and the same is deposited with the government on time. To avoid paying interest along with tax you must deposit the taxes to the government at the prescribed time.
It is better to take professional help. EZCorporates will guide you at every step from the tax deduction to the payment of tax and filing returns.
Why EZCorporates?
We provide a solution to all your tax-related queries; be it tax-withholding, payments, return filing, tax consultancy, etc.
Guidance: Tax withholding is one of those processes which no one can do for you. You will have to deduct the tax before making the payments. But at EZCorporates, we will provide you the guidance about when and how much tax you should deduct. It will ensure that no mistakes are committed in the process.
Proper query resolution: As a business owner, you have to make various payments. The provisions of tax withholding are not the same for all. You can consult us for any type of payment, apart from the most common ones you think tax withholding would be applicable. We are available for you all the time.
Solution for tax withholding on salaries: Majorly every business has to withhold tax before paying salaries to their employees. But where the number of employees is more, it is a bit difficult to do the calculation for every employee as the amount is different in each case. EZCorporates will help you in this; our team will make the process simpler so you can deduct the correct amount of tax without wasting much of your time.
You will not miss the deadlines: You are required to file your tax withholding return every quarter, which should be accurate. We ensure that you never miss a deadline so that there is no need to pay heavy penalties or interest. Also, the tax so deducted has to be deposited on time; we remind you regarding that so that no extra liability arises.
FAQs
Do I need to withhold tax on every payment?
No, withholding of tax is not required for every payment. Some specific payments have been prescribed on which it is required.
When should I withhold the tax?
The basic idea behind tax withholding is deducting it before making the payments.
What if I forget to deduct the payroll tax?
As an employer, it is your legal responsibility to withhold payroll taxes. If you fail to do so a penalty of up to a hundred per cent of such amount can be levied.
What are the consequences if I withhold the tax but forget to deposit it?
If you avail of our services, it will surely not happen. But in case, if you forget to deposit such tax interest will be levied on you for the number of days you do not make the payment at a prescribed rate.
What if I withhold extra taxes?
That is not a problem for an employer as an employee would get a refund for the excess of his tax liability.
When will I need to file the returns of tax withholding?
Although different states may have different dates, federal tax returns for withholding have to be filed quarterly. You should file it before the due date to avoid any penalties.
Book your appointment on call/email to get all the information related to tax withholding and return filing.