When you pay your employees, you are not paying them all of the money they earned. Instead, you are responsible for withholding part of their income for taxes. These can include income taxes and FICA (Social Security and Medicare). Your employees trust that this money – referred to as trust fund taxes – goes to… Read more »
If you’re having tax problems
Tag: Trust Fund
What are Trust Fund Taxes? Trust fund taxes include the Social Security, Medicare, and federal income tax a business withholds from its employees’ wages. These amounts are held in trust by the business until they are transferred to the IRS.
Understanding the “100% Tax Penalty” that Allows the IRS to Go After Multiple People in a Single Business When most people think of “trust funds” their minds immediately go to extremely decadent lifestyles equipped with fancy cars, caviar, and private islands, but when it comes to Trust Fund Recovery Penalties imposed by the IRS, the… Read more »