If you own or manage a business with employees, you may be at risk for a severe tax penalty called the “Trust Fund Recovery Penalty.”
What is the Trust Fund Recovery Penalty? Am I at Risk?
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If you own or manage a business with employees, you may be at risk for a severe tax penalty called the “Trust Fund Recovery Penalty.”
One of the most laborious tasks for small businesses is managing payroll. But it’s critical that you not only withhold the right amount of taxes from employees’ paychecks but also that you pay them over to the federal government on time.
If federal income tax and employment taxes (including Social Security) are withheld from employees’ paychecks and not handed over to the IRS, a harsh penalty can be imposed. To make matters worse, the penalty can be assessed personally against a “responsible individual.”