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Debra,

The withholding and remittance of all payroll taxes is an employer burden. If the employer fails to withhold taxes, fails to remit withheld taxes or erroneously declares an employee a contractor, the employer and ONLY the employer is liable for the taxes; all of the taxes including what would normally be the employee portion of FICA and Medicare. And unlike any other corporate tax, if the IRS chooses to play hardball, the IRS can PERSONALLY hold the check signor liable for all the taxes. There is no corporate shield for payroll taxes.

Watch your local business pages for all the tax liens by the IRS. Almost inevitably those are payroll taxes. By all means if an employer classified an employee as a contractor, I'd be all over that. That will quickly add up to a chunk of money.

You're right Debra that there is no tax fairy, but there are IRS agents who don't play when it comes to payroll taxes.

Leighsah
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