tax liability for off books payroll

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Hello everyone new to the boards,

I've got a question that one of my friends had asked me regarding a small business he works for.

The company has only been around for about a year and a half, and revenues of <15,000 last year. In short, the employees were paid off of the books and when filing this year he's going to have to assume liability for the tax supposed to be paid last year (long story). In essence, what's the best way to retroactively calculate payroll tax liability in this situation. This year, they've set up a legitimate payroll service, but as he should be, he's worried about last year. Any help is much appreciated.

Ryan
 

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