Payroll Tax Debt Relief

You Have the Option to Settle Your Payroll Tax Debt

It’s easy to fall behind on payroll taxes while managing a business. Many employers experience delays and then feel the pressure from the IRS to pay. In some cases, businesses fall so far behind that they stop responding because they can’t settle the debt in a lump sum. This is a mistake, as the issue only worsens with accumulating penalties and fees, which can eventually result in asset levies.

Related Services

Work with Taxprofix

What is Payroll Tax Relief?

Payroll tax relief is a service provided by the Taxprofix for business owners who failed to comply with payroll tax obligations as outlined by the IRS. Payroll tax could be owed due to many situations employers have no control over, however, it’s important to resolve the payroll tax debt. Taxprofix will evaluate your situation and represent your business in finding the best options to resolve your payroll tax liabilities.

What Are Business Owners Required to Withhold from Employees?

As a business owner with employees, you are required to withhold Social Security, Medicare, and federal taxes from the wages of all W-2 employees. It is your responsibility to remit these withheld payroll taxes to the IRS. Additionally, an unemployment tax must be paid for each employee. These payroll taxes should be submitted to the IRS on a quarterly basis.

Categories of Payroll Taxes and Their Withholding Rates

In 2025, there are several updates to various payroll tax withholding limits, including Social Security tax and 401(k) elective deferrals.

Social Security Tax Withholding

For 2025, the Social Security tax wage base for employees will increase to $176,100. The Social Security tax rate for employees and employers remains unchanged at 6.2% on wages up to $176,100.

Medicare Tax Withholding

Medicare tax will also apply to all wages and will be imposed at a rate of 1.45% for both employees and employers.

The combined Social Security and Medicare tax rate for employees and employers remains unchanged at 7.65% each.

The earnings base for self-employment tax will also increase to $176,100 with an effective rate of 15.3%. On self-employment income in excess of $176,100 Medicare tax will continue to apply at a rate of 2.9%. No self-employment tax is payable if annual net earnings are less than $400.

Additional Medicare Tax Withholding

All wages, including self-employment, which exceed $200,000, are subject to an additional Medicare tax of 0.9%. There is no employer share of this additional Medicare tax.

Federal Unemployment Tax (FUTA)

For 2025, the maximum taxable wage base remains unchanged at the first $7,000 of wages. The tax rate will remain at 6% with the credit for payment of state unemployment tax remaining at 5.4%. This results in the effective rate remaining at 0.6%.

How we work?

Consequences of Failing to Pay Payroll Taxes

Late Fees

The IRS will continue to charge late fees for missed payments. The fees can increase overtime.

Interest

The IRS can charge interest on top of what you owe. As interest accrues, so does the amount of the debt.

Tax Lien

Once your debt meets a substantial amount, the IRS may choose to claim a tax lien on your assets.

Loss Of Business

A tax lien may result in seizure of your property, inventory, and machinery.

Jail

Failure to pay taxes can lead to criminal charges and a conviction with a jail sentence.

Work with a Tax Professional to Resolve Payroll Tax Debt

The easiest way to get your payroll tax debt resolved is by working with a professional tax relief company that has experience with payroll tax resolution. You can try to deal with the IRS on your own, but unless you have a lot of time, patience, and knowledge, the experience is overwhelming for most business owners. An experienced tax resolution company can negotiate on your behalf and make sure you take full advantage of any IRS tax relief program that you qualify for.