Category Archives: Payroll Taxes

Yet Another Payroll Service In Trouble

What happens if you use a payroll service and they don’t forward the deposits to the IRS and your state tax department? The payroll company will be in trouble, but the employer is still liable for the deposits. That’s why … Continue reading

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Out Like a Lamb

One of the surest methods I know to get the IRS upset with you is to withhold payroll taxes and not remit them. Payroll taxes are called trust fund taxes; I’ve yet to know of a time when the IRS … Continue reading

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States Don’t Like Trust Frund Tax Violators, Either

I used to work in Stockton. And I know that I have at least one reader who resides there (a former co-worker). He is probably already aware of the problems that the Sang family faces. Richard Sang, his wife Amber … Continue reading

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If You Want to Visit ClubFed…

There’s a sure-fire method to get the IRS upset with you. Just withhold trust fund taxes from your employees (FICA and income tax) and don’t send them to the IRS. I can almost guarantee you that bad things will happen … Continue reading

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Why Trust Fund Tax Fraud is Bad

We received an email regarding the post we did on Ace Tire & Parts. The owners of Ace are accused of violating federal employment laws and have each pleaded guilty to one count of tax fraud. In any case, we … Continue reading

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A Bozo Scheme Fails

Please don’t try this yourselves. You have a successful business (in this case, Ace Tire & Parts of Coraoplis, Pennsylvania). You decide that you don’t have to pay payroll taxes; instead, you’ll make your employees checks payable to “Cash” and … Continue reading

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Payroll Processing Follies

There’s one task that I insist that my business clients do not perform themselves: payroll processing. Given the penalties and legal liability issues, I urge them to go with an extremely reputable company. There are several that do an excellent … Continue reading

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