On average, almost every U.S. employer can expect to receive at least one IRS penalty assessment for errors in employment tax administration, every year. In FY2016, the IRS issued more than 5.8 million penalty notices for employment tax, totaling over $6 billion, or roughly $1,000 per notice.
Maintaining employment tax compliance can be a risky business. Businesses across the U.S. are struggling to understand how the recent Tax Cuts and Jobs Act (P.L. 115-97) affect them. Many provisions are immediately effective, although the IRS may not issue guidance for months.
With Federal tax reform becoming law and expected to spark similar legislation in more than forty states, it’s difficult enough to just keep up with the changes, let alone comply with them. And with the recent increase in IRS information reporting penalties for incorrect information – which has more than doubled1 – can you afford to make any mistakes?
Helping you stay compliant is one of our highest priorities. In fact, ADP makes over 1,000 programming changes annually to help our clients comply with evolving laws and regulations affecting the workplace.
Join our webcast on April 4th to discover:
- The latest tax changes that could impact your organization, such as the Tax Cuts and Jobs Act and the Mobile Workforce State Income Tax Simplification Act
- The risks of trying to manage employment tax compliance in-house, which could include monetary penalties of up to 7-figure amounts annually
- How you can minimize risk and simplify employment tax compliance with the help of ADP
1 IRS Data Book, FY2016