From time to time, the nurse staffing invoice funding specialists at PRN Funding gets asked a question that we think our nurse staffing readers would appreciate hearing about. So today, our nurse staffing factoring staff are answering:
How Important is it for nurse staffing agencies to pay payroll taxes on time?
In short, VERY! Nurse staffing business owners may be able to dodge the bullet for a bit, but not paying your payroll taxes on time will catch up on business owners eventually. When the IRS discovers that a nurse staffing agency owner is behind, the punishment can cost the agency dearly.
The good news is that there are ways to catch up on back taxes. The best way for staffing agencies to stay in good-standing with the IRS is to respond to their calls and letters, and once a re-payment plan in is place, agency owners need to honor their commitments. Demonstrating a willingness to cooperate with the IRS helps nurse staffing agency owners avoid an IRS tax lien on his/her business.
It’s important to note that when a nurse staffing agency has a factoring relationship, the factor will be most likely want to see proof that payroll taxes are being paid. Nurse staffing invoice factoring companies will ask for this proof because the IRS is the only entity who can trump a factor’s lien.
One Reply to “How Important is it for Nurse Staffing Agencies to Pay Payroll Taxes on Time?”
It is very important that all payroll taxes be paid on time. Not paying your payroll taxes can put you out of business faster than almost anything else.
That’s why a funding company, such as Realtime Funding, is sometimes preferable to a factor. We pay the payroll and all of the payroll taxes from our funds and also provide 100% accounts receivable funding.
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