Generally, an employer is required to deduct and withhold Federal Insurance Contribution Act taxes ("FICA"), Federal Unemployment Tax Act taxes ("FUTA"), and income tax withholding from its employee's wages and is separately liable for the employer's share of FICA and FUTA. However, in some cases, an employer will use a third party to perform some or all of the employer's federal employment tax withholding, reporting, and payment obligations.
Common third-party payer arrangements include: a payroll service provider ("PSP"), a reporting agent ("RA"), a professional employer ...
The Supreme Court issued its opinion in South Dakota v. Wayfair, Inc. on June 21, 2018. The closely followed case involved a South Dakota law that required certain out-of-state sellers who sold more than $100,000 of goods or services to South Dakota customers, or engaged in 200 or more separate transactions with South Dakota customers, to collect sales tax. South Dakota enacted the law to provide a basis to challenge the physical presence rule. The physical presence rule precludes a state from requiring an out-of-state seller to collect sales tax if the seller does not have a physical ...
Where a business does not pay its federal employment and/or unemployment taxes, and continues in operation, the IRS will utilize administrative measures, including tax liens and levies, to collect the unpaid taxes. Administrative measures alone, however, may often not prevent a business from operating and also paying its back taxes. In these instances, the IRS has increasingly gone to the courts, and is now more frequently requesting injunctive relief against these businesses in order to prevent the business from operating and where it may further accrue federal ...