Small businesses: Stay clear of a severe payroll tax penalty - Crawford Ellenbogen

Managing payroll is a laborious task for small businesses. But
it’s critical to withhold the right amount of taxes from employees and pay them
over to the federal government on time. If you don’t, you could be hit with the
Trust Fund Recovery Penalty, also known as the 100% penalty. It applies to the
Social Security and income taxes required to be withheld by a business from its
employees’ wages. It’s called the 100% penalty because people liable or
responsible for the taxes can be personally penalized 100% of the taxes due.
Absolutely no failure to withhold and no “borrowing” from withheld amounts
should ever be allowed in your business. Contact us for more information.