I wanted to take some time today to explain something called the trust fund recovery penalty it's kind of a silly name because it's actually not a penalty at all it represents unpaid payroll taxes that an employer is responsible to hold in trust for the US government to make matters worse it used to be called that one hundred percent penalty we should let people to believe that there was no penalty of one hundred percent of the tax company interest owed on top of what they owe in terms of payroll taxes but that's not really the case so let's take a look here on the board and I'll explain it a little bit better okay so we have the trust fund recovery penalty t frp for sure and what we have here is what i call the payroll tax pod is the only way that i can ever figure out how to explain this to people in simple concise language that they would understand so as you can see here i can't draw circles very well and number two that there is a larger half of this pie and the larger half of this pie represents the employee share of payroll taxes and over here we have the employer and I'm well aware that I didn't spell those things right but so we how many times we have half of fighting gun half a Medicare and over here you have the food of the federal unemployment tax and over here you have behalf of FICA mathematic air and you have the federal income tax so here's what this means is you understand what your paycheck there's this large chunk that's taken out of that well the employee has to pay you know half of the FICA half...
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Trust Fund Recovery penalty Form: What You Should Know
How it works — Anderson & Jade Sep 25, 2023 — Paying the Trust Fund Recovery Penalty to the IRS If you are a qualified taxpayer, you can settle a judgment against your employer for the Trust Fund Recovery Penalty at the federal level of tax (currently at 35%) — Anderson & Jade The trust fund penalty is levied at a rate of 8.35% (i.e. 2,084 for each employee who is covered by a TENANT CONTRACT) up to a maximum rate of 18%. However, the IRS can tax the payment if you fail to deduct the penalty from your individual federal gross income. Why the Trust Fund Recovery Penalty exists — In order to make it as easy as possible for employers, the IRS is allowing employers to pay the trust fund penalty to the IRS for workers on their payroll who failed to withhold the full amount under the requirements of the federal law. The trust fund penalty is levied at a rate of 8.35% (i.e. 2,084 per individual employee) up to a maximum rate of 18%.
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