Why the IRS Deals So Harshly With Businesses That Don’t Pay Their Payroll Tax Posted By : Mary E King
Not paying payroll tax is something the IRS considers very serious. As an employer, you are responsible for withholding part of your employees’ wages to pay their: Income tax and FICA (Social Security & Medicare) tax. Since the employees place their trust in you that you are taking this money out of their paycheck and are paying these taxes with their money, they are called “Trust Fund Taxes”. However, if for any reason you fail to pay this money – in the eyes of the IRS you have betrayed the “t