First Employee
“My payroll software automatically calculated the wrong withholding rate for my employees, am I personally liable to pay the difference to the IRS?”
When payroll software calculates withholding incorrectly, the answer often depends on who controlled the payroll process, whether the employee records and tax settings were entered accurately, and how quickly the error was discovered and corrected. In many cases, the IRS looks at the employer’s responsibility to withhold, deposit, and report taxes, even if a third-party system handled the calculations. The details can also vary based on whether the issue affected a single employee or multiple pay periods, and whether supporting payroll records show reasonable reliance on the software and timely follow-up once the mismatch was noticed. A targeted review with a CPA can turn the uncertainty into a clear next step.
In your 90-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“Should I pay someone as a 1099 contractor or an employee for tax purposes?”
“How do I know if I should hire someone as a contractor or employee for taxes?”
“I am hiring my first worker, should they be 1099 or W-2 for tax reasons?”
“What changes on my taxes if I use a 1099 contractor instead of an employee?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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