Report Finds Exempt Organizations Owe Hundreds of Millions in Payroll Taxes
According to a report recently released by the Treasury Dept, many tax-exempt organizations failed to pay their required payroll taxes leading to nearly $1 billion in lost revenue for the Treasury over a three-year period
The Advi$or reminds tax-exempt organizations such as those qualified under tax code Section 501(c)(3) that while they are generally not required to pay income tax on generated revenue, they are required to pay payroll taxes on wages paid to all employees, just like any other business. The tax exempt status does not exempt the entity from collecting and filing payroll tax payments and reports
The report noted that 3.8 percent, or more than 64,200, tax-exempt organizations, owed nearly $875 million in federal tax debt as of June 2012. According to the Treasury Dept, part of the problem is that the Internal Revenue Service’s Exempt Organizations division was unaware of the noncompliance because the delinquent tax debt is handled by the IRS Small Business/Self-Employed Division.
If you are involved in a tax exempt organization and have questions regarding paying your employees and payroll taxes, feel free to call one of our representatives at 423-854-9042 or Contact Us. The Advi$or is sure that the IRS is working diligently to correct this loophole.
About Time & Pay:
Time & Pay is a professional payroll service provider located in Johnson City, TN. We service businesses of all sizes and types throughout the United States. Founded in 1992, Time & Pay provides businesses with complete payroll services , guaranteed payroll tax compliance, automated time and attendance systems and services, pay-as-you-go worker’s comp, human resource management systems and services, and more. We provide our customers with the cost effective tools you need to better manage your payroll, your employees and your business. Time & Pay’s services guarantee you will save money, time and aggravation and we back them up with the customer service you expect and deserve. Contact us today to learn why business owners throughout the country are saying:
“Time & Pay! Why would you do payroll and timekeeping any other way?”
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