The portion of employees' wages that an employer withholds for federal payroll taxes is called 'trust fund taxes', because these funds are essentially held in a trust, to be remitted to the IRS. The IRS imposes a Trust Fund Recovery Penalty (TFRP) on employers that fail to withhold federal payroll taxes from employees' wages or remit payroll taxes withheld. The penalty is 100% of the
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Web page updated on 17 Mar 2025 15:05