Who is liable for payroll taxes in a corporation?
The taxpayer is liable. That is the corporation. If a corporation is unable to pay, the responsible persons in the corporation who should have made sure the taxes were paid can be held liable for a penalty equal to the unpaid withholding tax. This obviously includes the person directly responsible but could be extended to other officers who should have known and turned a blind eye. In my state, the same people can be held liable for all the state employment and sales tax including penalty and interest. The remaining officers need to figure out if they could be held liable and take steps to avoid any proposed personal assessments.
