Employer Tax Withholding Responsibility

If you have employees who work for you, you must withhold income, Social Security, and Medicare taxes from their pay. Hold it in trust until you’re required to deposit it with the U.S. Treasury using the Electronic Federal Tax Payment System (EFTPS).

If you withhold taxes but don’t deposit them, you could face a trust fund recovery penalty. This means the IRS can collect the unpaid taxes from you personally. Your income, assets, or home can be used to pay off the trust fund taxes.

Make sure that as an employer, you are aware of your employment tax responsibilities.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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