Plus... Payroll Taxes
Employers are required to withhold federal income and Social Security and Medicare (FICA) taxes from their employees’ wages and to pay them to the IRS. These withheld taxes are also known as “trust fund taxes” because the employer holds them “in trust” until the proper deposit is made. Severe penalties can apply for failing to meet these obligations. Moreover, any “responsible person” who “willfully” fails to properly deposit those taxes may be held personally liable for 100% of the unpaid amount.
A “responsible person” includes a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes and may include officers or employees of a corporation, members or employees of partnerships, a corporate director or shareholder, a member of a board of trustees of a nonprofit corporation, or a person with authority and control over funds to direct their disbursement.
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