Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Please Type Topic Into Search Bar

What is the most common payroll mistake the companies make? What is the IRS auditing most in the area of employment taxes?

Payroll Tax Employment Tax
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here

Tax Professional Answers

User Photo
John Dundon, II EA
The most common mistake I am seeing is when employers classify workers inappropriately as independent contractors and issue the worker a 1099-misc when the workers should really be treated as employees and receive W2s subjecting wages to employment tax. For more on this topic check out these posts ...
Leave a Comment 386 weeks ago

User Photo
Darren Sanford
In my experience, one of the most common mistakes I've seen in payroll accounting is in the area of state and Federal unemployment tax. Either the computer systems aren't set up correctly or the bookkeeper/payroll clerk doesn't know the law, but many companies fail to stop paying the tax on wages above the maximum wage base subject to the tax.

With regard to your second question, I would agree with John. Misclassification of workers to avoid payroll taxes is a high audit area for IRS.
Leave a Comment 386 weeks ago

Meet Leading Tax Advisors

User Photo John Stancil



User Photo Peter J. Scalise

Federal Tax Credits & Incentives Practice Leader

New York, NY

User Photo John Dundon, II EA

Tax Director

Denver, CO

User Photo William Rogers, CFP, MBA, EA

CEO/Certified Financial Advisor

Rancho Santa Fe, CA

User Photo Monika Miles


San Jose, CA

User Photo Blake Christian

Tax Partner

Long Beach/ Park City, CA

User Photo John Richardson


Toronto, Canada


View/Select our Current List of Tax Topics

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Previous PageNext Page



Learn from tax advisors, straight to your inbox

Update My Email Address
Contact Us Today