{"id":49,"date":"2023-03-20T23:57:17","date_gmt":"2023-03-20T23:57:17","guid":{"rendered":"https:\/\/www.pargofinancial.com\/blog\/?p=49"},"modified":"2023-05-12T23:19:21","modified_gmt":"2023-05-12T23:19:21","slug":"payroll-taxes-whos-responsible","status":"publish","type":"post","link":"https:\/\/www.pargofinancial.com\/blog\/payroll-taxes-whos-responsible\/","title":{"rendered":"Payroll Taxes: Who&#8217;s Responsible?"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Any business with employees must withhold money; payroll taxes from its employees&#8217; paychecks for income and <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/understanding-employment-taxes#:~:text=An%20employer%20generally%20must%20withhold,has%20a%20wage%20base%20limit.\" target=\"_blank\" rel=\"noreferrer noopener\">employment taxes<\/a>.  Including Social Security and Medicare taxes (known as Federal Insurance Contributions Act taxes, or FICA).   A business that knowingly or unknowingly fails to remit these withheld taxes in a timely manner will find itself in trouble with the IRS.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><br><br>The IRS may levy a penalty, known as the <a href=\"https:\/\/www.justice.gov\/tax\/employment-tax-enforcement-0\" target=\"_blank\" rel=\"noreferrer noopener\">trust fund recovery penalty<\/a>, on individuals classified as &#8220;responsible persons.&#8221; The penalty is equal to 100% of the unpaid federal income and FICA taxes withheld from employees&#8217; pay.<br><br>Who&#8217;s a Responsible Person?<br>Any person who is responsible for collecting, accounting for, and <a href=\"https:\/\/taxfoundation.org\/what-are-payroll-taxes-and-who-pays-them\/\" target=\"_blank\" rel=\"noreferrer noopener\">paying over withheld taxes <\/a>and who willfully fails to remit those taxes to the IRS is a responsible person who can be liable for the trust fund recovery penalty. A company&#8217;s officers and employees in charge of accounting functions could fall into this category. However, the IRS will take the facts and circumstances of each individual case into consideration, in determining who&#8217;s responsible for payroll taxes.<br><br><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"325\" height=\"130\" src=\"https:\/\/www.pargofinancial.com\/blog\/wp-content\/uploads\/2023\/05\/payroll-tax-form.jpg\" alt=\"\" class=\"wp-image-224\" srcset=\"https:\/\/www.pargofinancial.com\/blog\/wp-content\/uploads\/2023\/05\/payroll-tax-form.jpg 325w, https:\/\/www.pargofinancial.com\/blog\/wp-content\/uploads\/2023\/05\/payroll-tax-form-300x120.jpg 300w\" sizes=\"(max-width: 325px) 100vw, 325px\" \/><\/figure>\n\n\n\n<p>payroll tax form<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>The IRS states that a responsible person may be:<br><br>An officer or an employee of a corporation<br>A member or employee of a partnership<br>A corporate director or shareholder<br>Another person with authority and control over funds to direct their disbursement<br>Another corporation or third-party payer<br>Payroll service providers<br>The IRS will target any person who has significant influence over whether certain bills or creditors should be paid or is responsible for day-to-day financial management.<br><br><a href=\"https:\/\/www.pargofinancial.com\/blog\/the-top-5-ways-businesses-get-in-trouble-with-the-irs\/\" target=\"_blank\" rel=\"noreferrer noopener\">Working With the IRS<\/a><br>If your responsibilities make you a &#8220;responsible person,&#8221; then you must make certain that all payroll taxes are being correctly withheld and remitted in a timely manner. Talk to a <a href=\"https:\/\/www.pargofinancial.com\/blog\/5-common-and-costly-payroll-errors-and-how-to-avoid-making-them\/\">tax professiona<\/a>l if you need to know more about the requirements.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Any business with employees must withhold money; payroll taxes from its employees&#8217; paychecks for income and employment taxes. Including Social Security and Medicare taxes (known as Federal Insurance Contributions Act taxes, or FICA). A business that knowingly or unknowingly fails to remit these withheld taxes in a timely manner will find itself in trouble with [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[3,9],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.9 (Yoast SEO v20.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Payroll Taxes: Who&#039;s Responsible? - Pargo Financial LLC<\/title>\n<meta name=\"description\" content=\"Payroll Taxes: Who&#039;s Responsible? The IRS may levy a penalty, known as the trust fund recovery penalty, on responsible persons.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pargofinancial.com\/blog\/payroll-taxes-whos-responsible\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Payroll Taxes: Who&#039;s Responsible?\" \/>\n<meta property=\"og:description\" content=\"Payroll Taxes: Who&#039;s Responsible? 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