(ASL) - YouTube video text script - Employer Tax Withholding Responsibility
Hi, I’m Jeshal, and I work for the IRS.
Do you have employees who work for you?
If so, you must withhold income taxes, Social Security taxes and Medicare taxes from your employees’ pay.
You should hold this money “in trust” until you’re required to deposit it with the U.S. Treasury using the Electronic Federal Tax Payment System or EFTPS.
But what happens if you don’t do this?
If you withhold taxes but don’t deposit them, you could face a Trust Fund Recovery Penalty. This means that the IRS can collect the unpaid taxes from you personally.
Your income, your assets, even your home, can be used to pay off the trust fund taxes.
If you don’t turn over the taxes you withheld, when your employees get their W-2s, they will still get credit for the taxes you withheld.
However, taxpayers must make up the difference to cover the trust funds you didn’t deposit.
This is a serious violation of the tax law.
So as an employer, it’s critical that you be aware of your employment tax responsibilities.
There’s help if you need it.
You can check with your local Chamber of Commerce, the Small Business Administration, or with us at the IRS.
We have all the material you need, including publications, such as Publication 15, which is the Employer’s Tax Guide, forms, and the relevant filing procedures and due dates, all on IRS.gov.