Comments on: You’ve “borrowed” money from the IRS by not paying your payroll taxes so that you have enough money to pay your employees

By: Small Business Owner

Small Business Owner — Sun, 19 Dec 2010 03:35:07 +0000

I too am in trouble with my payroll taxes. It is truly a cash flow problem I will run at least 3 payrolls before I receive payment from a customer. And since I am not a big bank or GM, I cant get a bail out or even a SBA loan from the bank. I also have to pay sales tax on my invoices BEFORE I even collect the money. And some of my customers went out of business themselves and never paid me. But I still have to pay my employees because they worked! The country is going under because it is losing “the small business owner”, but no-one wants to help us. No-one!! I have found a group called SCORE and it is free help for business owners they are nation wide, I hope they can help me……

By: NonTaxEnthusiast

NonTaxEnthusiast — Tue, 13 Apr 2010 03:58:55 +0000

Joshua, I’m with you. Easy for RJ to criticize. You had the right intentions “saving jobs” but now you’re in the pickle. I’ll pray for ya man. God is the only one i’ve known to beat the IRS. Unfortunately the small business man never go the bail outs – the banks did and the gov’t just keeps printing new money when the need it.

RJ, Stealing from the gov’t?? Give me a break!! The gov’t steals from hard working people everyday and you and your fellow countrymen every day and you scream REPORT THEM! Walk a mile in another’s man shoes – you shall reap what you sow.

Sprice, there is a form you can file to pay your own taxes – be glad you have a job or just quit if you don’t want to file your own taxes. Don’t hurt others that need to feed/shelter thier families.

By: Randidily

Randidily — Tue, 09 Mar 2010 16:11:50 +0000

Howdy all, my boss has not paid any payroll taxes for at least 4 months. And I do understand if things get tough for all of you that own your own company. My boss on the other hand has purchased a condo at the beach and a yaht at the marina this last year including the rental at the dock. All while falling into a mountain of unpaid loans and debt. To all of you owners out there that really do give up your own to make right for everyone else I have hope for your integrity. For all of you people who barrow someone elses life to live it up. I have three words for you.. GET A JOB, you obviously shouldnt be running one. At least know when to holdem and know when to foldem. Oh, I did own my own company and never did I not pay my taxes even when I had to eventually shut it down.

By: Joshua Steimle

Joshua Steimle — Mon, 01 Feb 2010 16:15:19 +0000

RJ – It sure is easy to criticize the other guy when you’ve never been in his shoes, isn’t it? Why don’t you try starting a business with a few employees and then tell us if you see things the same way?

As a business owner I went four years without getting paid while I paid my employees’ salaries and health insurance premiums. I put all my personal savings into the business. I took out loans and guaranteed them personally, putting my house, cars, and everything else I owned up at collateral. I borrowed money from family and friends. I maxed out $60K in credit cards. I worked 80-90 hour weeks while my employees only worked 40. I ended up moving my family out of our house and living in a studio apartment over a garage in order to save money while some of my employees lived in spacious, six-bedroom houses in fancy neighborhoods. Is this what you call lazy and inconsiderate?

I didn’t pay my payroll taxes for nine months because it was a choice between giving my employees a paycheck, or paying the payroll taxes. There was no way to pay both. I was already not paying myself, had maxed out all my credit cards, had taken out all the loans I could get approved for, had borrowed all the money I could from family and friends, and had already put all my savings into the business. I figured if I paid the payroll taxes but not the paychecks, then my employees would be forced to leave to find other jobs and I’d be out of business. But if I paid the paychecks then we could stay in business and hopefully catch up on the payroll taxes, everyone could keep their jobs. What would you have done differently?

By: RJ

RJ — Mon, 01 Feb 2010 04:53:55 +0000

“SPRICE” You need to report it directly to the IRS. Go to http://www.IRS.GOV and report them! If they hold the money out of your check, and you can prove that they are NOT paying the payroll taxes, then that is THEFT! They are stealing from you…and stealing from the government. NOT TO MENTION the fact that if you worked there all year, and you are trying to file for your tax return…and they have paid no tax on you….well guess what…no RETURN for you either…because the employer has not even reported to the government that the paid you a dime!

SHAME SHAME SHAME on you lazy, inconsiderate employers for not paying taxes on your employees. I guess you would rather save your Home that is in Foreclosure, or order just ONE MORE food order. As* Holes!

By: SPRICE

SPRICE — Fri, 22 Jan 2010 19:16:10 +0000

My employer right now is not paying in our payroll taxes, yet she’s taking it out of our checks, where do I report that?

By: Plutonianka

Plutonianka — Thu, 19 Nov 2009 16:57:32 +0000

I have similar problem. I own small landscaping business and this year we started doing commercial installations. Well, I have general contractors, which haven’t paid me since June. I have to pay 20K in payroll to my employees. I tried to get loan from the bank and denied, then borrowed money from my mother-in-law and paid most of the payroll. Yesterday I called LNI and asked what should I do if I absolutely have no money to cover the remaining of payroll or taxes, the answer was, that I need to pay or I’ll get huge fines. Our government is willing to kill my company, get their one time money (if anything is left). I won’t be able to finish projects and generate any income to back pay or provide any type of employment in the future. Small businesses are so unprotected.

By: A Lost Procrastinator

A Lost Procrastinator — Sat, 14 Nov 2009 16:18:26 +0000

My small repair company hired a person as a subcontractor, to work a currently large project he filled out part of the form, said he would give us his insurance policy information, etc later…..
Well after several months, he came clean and said he had stopped paying his company insurance before signing on with us. We told him we will no longer be needing his services as he lied to us. Now this guy is trying to get unemployment from us…..because we are on file as the last known employer. He has not filled out a w-2 obviously.

So I am wondering since he let his company go down the tubes, and got rid of the insurance…are we now stuck with him as an employee or can we fight it…..cause he lied to us about his subcontractor status.

By: Lesson

Lesson — Fri, 13 Nov 2009 16:11:17 +0000

If you don’t want to pay or can’t pay the payroll taxes for your employees don’t screw them by allowing the problem to snowball! Either layoff some employees or pay everyone on a 1099 basis.

BAD ADVICE!!!!! If you improperly classify an employee as a “contractor” the IRS can make you pay back taxes on them. DO NOT DO THIS!!!!

Here is a link:

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

By: Procrastinator

Procrastinator — Fri, 13 Nov 2009 02:38:55 +0000

My gosh to think there are others out there with a similar situation is somehow a godsend. I hope we get answers soon. My troubles run a little deeper also but I didn’t get into that. I wish there was help available for this terrible problem. Procrastinatiors Anonymous??? Could we be a support to each other in some way?