Businesses can face severe consequences for failing to comply with tax withholding regulations, including:
Penalties: Organizations can incur financial penalties and fines with high interest rates that can add up over time and hurt their bottom line.
Legal action: From investigations to audits and lawsuits, these are some of the legal actions a company can face for tax withholding noncompliance.
Reputational damage: Failing to comply with tax withholding regulations can tarnish a business’s reputation, resulting in decreased business, lower employee morale, decrease trust and confidence from consumers.