Who Is Responsible For Payroll Taxes?

Q — If payroll tax deposits are stolen is the employer still responsible?

A — Yes, the employer is still responsible.

Take a situation where  instead of making period payroll tax deposits with the IRS, the company bookkeeper wires the money into a personal account.  The employer might argue that they cannot be held responsible for the unpaid taxes.  After all, the failure to deposit taxes is not the employer’s fault.  It was due to criminal activity on the part of a trusted employee.

It makes no difference to the IRS.  The taxes are still due and they can force the employer to make good.

For more information, contact our office.

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