Can the Federal or State Government Come After a Business Owner If You Don’t Pay Your Employees On Time?
The short answer is yes. If a business owner is having problems paying his employees, regardless of the circumstances, the federal or/and state government can come after you. The reasons stem from the fact that the government wants their money since you are accruing and paying a portion of your employee’s payroll taxes. In addition, your employees can call the state board and make them aware that they have put time into work in the expectation that they are going to get paid, on time. The state board takes this extremely seriously and there will be serious penalties if a business owner were not to pay their employees on the expected payroll date including closing your business down.
What should a business owner do if you are going to miss payroll?
First, do everything you can to not miss payroll. Borrow money from friends, tap any financial resources you might have, don’t pay any vendor payables and don’t let your employee know until you have no other solutions. Call Financing Solutions immediately at 862-207-4118×502, www.payrollfinancingsolutions.com. FS was specifically formed to loan good company’s money in crisis situations so you don’t miss payroll and so you can have a working capital loan. In the short term, forget about trying to get a quick loan from a bank or a factor because those financial institutions are not designed to move quickly.
It is always a good idea to be straight up with your employees and to let them know what is happening however it is also important for you to exhaust every option because once you tell your employees they are not getting paid, your company runs the risk of losing its most important resource…your people.
Financing Solutions (www.payrollfinancingsolutions.com) provides fast business loans of $5,000-$100,000 to good small businesses with sales of $500,000-$7 million that can be used for working capital.