Full Video Transcript
Employers are required to collect a portion if each employee’s income for Social Security and income taxes. Participation is mandatory, and there may be state, local and unemployment taxes to collect. These amounts must be deducted from an employee’s check and sent to the appropriate agency, such as the IRS. The money withheld from the employee’s paycheck may be kept in the company’s checking account for a brief time until the payment is due. This may create a deceptive checking account balance, and you may be tempted to use the cash for a quick financial fix. However, if you do so, you may be subject to heavy fines and may be held personally responsible for the repayment of the money. Proper handling of payroll taxes demands attention and will go a long way toward keeping you out of legal trouble. For more information on payroll taxes, contact a qualified attorney today.