Subscribe to Entrepreneur for $5
Subscribe

Payroll Piggy Bank?

The IRS is no pushover when it comes to payroll withholding taxes. So if you're tempted to misuse these funds, you'd better reconsider.

By
This story appears in the September 2003 issue of Entrepreneur. Subscribe »

Payroll taxes have long been an annoying thorn in the side of business owners. Some entrepreneurs have even been tempted to borrow some of the money set aside to pay these levies. But the experts say you'd be foolish to fall into that trap.

The money you withhold from employee paychecks to pay federal income, social security and Medicare taxes is considered trust fund money and is collected and held in trust by employers for the federal government. The same is true for the state and local payroll taxes you collect.

Continue reading this article - and everything on Entrepreneur!

Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.

Get 3 months free with code zendesk

Presented by Zendesk

Champions of Customer Service zendesk

Entrepreneur Editors' Picks