Withholding Taxes

On a regular basis, employers must deposit a portion of every employee's income taxes with the IRS and state taxing authorities.  These withholding taxes – paid with money deducted from employee paychecks – are considered a trust fund tax as the funds are held in trust for the employee.  The schedule for paying withholding taxes varies based on the amount of the taxes owed and they may be paid at a bank or directly to the taxing authority.  Failure to deposit withholding taxes leads to a tax liability for the employer.  Please contact Larson Financial to get answers specific to your situation