A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Failure to Remit Payroll Taxes Definition

December 8, 2014

mkappel

Short Definition
The IRS takes failure to remit payroll taxes seriously. Employers are required to forward specific taxes they have withheld and matched from employee paychecks to tax agencies. Failure to pay these taxes will result in penalties and interest.

Extended Definition
Payroll taxes that are deducted from employee paychecks must be paid to various federal, state, and/or local agencies by specific due dates. Taxes employers are required to match from each paycheck must also be forwarded to the appropriate tax departments. If the taxes are not paid, the Internal Revenue Service (IRS) (or other agency) can charge financial penalties and begin a criminal investigation.

Related Blog Article:
What Happens If You Fail to Remit Payroll Taxes?
What Are Payroll Taxes?

Accounting software glossary ad