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 Joan Szabo • May 5, 2006 Originally published Sep 9, 2003
Opinions expressed by Entrepreneur contributors are their own.
Payroll taxes have long been an annoying thorn in the side ofbusiness owners. Some entrepreneurs have even been tempted toborrow some of the money set aside to pay these levies. But theexperts say you'd be foolish to fall into that trap.
The money you withhold from employee paychecks to pay federalincome, social security and Medicare taxes is considered trust fundmoney and is collected and held in trust by employers for thefederal government. The same is true for the state and localpayroll taxes you collect.
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