Failure to Remit Payroll Taxes 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.

Failure to Remit Payroll Taxes 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 that employers 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.

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Last Updated By

Rachel Blakely-Gray | Apr 27, 2023