Recently, Abigail Patches of Preferred Staffing of Ohio pleaded guilty in federal court to failing to pay employment taxes to the IRS. Ms. Patches was accused of withholding federal income taxes and FICA payments from the company’s employees but failing to forward those withheld sums to the government. The total amount of non-payment was north of $1.5 million. Ms. Patches could face up to five years in prison and a fine of up to $250,000.
A word to the wise: employers who fail to timely submit funds withheld from their employees to the government are dealt with sternly.