{"id":1017,"date":"2020-02-28T16:24:06","date_gmt":"2020-02-28T16:24:06","guid":{"rendered":"https:\/\/www.excelsisaccounting.com\/blog\/?p=1017"},"modified":"2020-02-28T16:26:12","modified_gmt":"2020-02-28T16:26:12","slug":"payroll-taxes-whos-responsible","status":"publish","type":"post","link":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/2020\/02\/28\/payroll-taxes-whos-responsible\/","title":{"rendered":"Payroll Taxes: Who&#8217;s Responsible?"},"content":{"rendered":"<p><a href=\"https:\/\/www.excelsisaccounting.com\/blog\/wp-content\/uploads\/2020\/02\/payroll-accts2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1020 alignleft\" src=\"https:\/\/www.excelsisaccounting.com\/blog\/wp-content\/uploads\/2020\/02\/payroll-accts2.jpg\" alt=\"binder with payroll\" width=\"250\" height=\"167\" \/><\/a>Any business with employees must withhold money 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), and forward that money to the government. 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<p>The IRS may levy a penalty, known as the trust fund recovery penalty, 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.<\/p>\n<p><strong>Who&#8217;s a Responsible Person?<\/strong><\/p>\n<p>Any person who is responsible for collecting, accounting for, and paying over withheld taxes 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.<\/p>\n<p>The IRS states that a responsible person may be:<\/p>\n<ul>\n<li>An officer or an employee of a corporation<\/li>\n<li>A member or employee of a partnership<\/li>\n<li>A corporate director or shareholder<\/li>\n<li>Another person with authority and control over funds to direct their disbursement<\/li>\n<li>Another corporation or third-party payer<\/li>\n<li>Payroll service providers<\/li>\n<li>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.<\/li>\n<\/ul>\n<p><strong>Working With the IRS<\/strong><\/p>\n<p>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.<\/p>\n<div class=\"col-sm-8 content\">\n<p>Our team of tax planning and income tax preparation professionals can help you save on taxes. Contact us to\u00a0<a href=\"https:\/\/www.excelsisaccounting.com\/consultation.htm\">request a\u00a0consultation<\/a>, or give us a call today at\u00a0<strong>775-332-4201\u00a0<\/strong>and ask for Mark Bailey for more information.<\/p>\n<\/div>\n<div id=\"sidebar\" class=\"col-sm-4\">\n<div id=\"consult_box\" class=\"row\"><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Any business with employees must withhold money 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), and forward that money to the government. A business that knowingly or unknowingly fails to remit these withheld taxes in a timely manner will &hellip; <a href=\"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/2020\/02\/28\/payroll-taxes-whos-responsible\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Payroll Taxes: Who&#8217;s Responsible?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[257],"tags":[],"class_list":["post-1017","post","type-post","status-publish","format-standard","hentry","category-business-tax"],"_links":{"self":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=1017"}],"version-history":[{"count":4,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1017\/revisions"}],"predecessor-version":[{"id":1022,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1017\/revisions\/1022"}],"wp:attachment":[{"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=1017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=1017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.excelsisaccounting.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=1017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}