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.
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
Entrepreneur Editors' Picks
These Co-Founders Are Using 'Quiet Confidence' to Flip the Script on Cutthroat Startup Culture and Make Their Mark on a $46 Billion Industry
My 7-Year-Old Daughter Started Selling Eggs. Here's What She Taught Me About Running a Startup.
Why You Need to Become an Inclusive Leader (and How to Do It)
Career Transitions You Can Make in Your 40s and 50s
Billionaire Naveen Jain Is an Expert at Disrupting Fields He Has No Experience In. His Secret Sauce for Building Multi-Million Dollar Companies? 'You Have to Come as Naive.'
4 Principles to Develop Next-Level Leadership at Your Company
This Filipino American Founder Is Disrupting the Beverage Aisle by Introducing New Flavors to the Crowded Bubbly Water Market