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What are “trust funds” in the payroll tax context?
PostedNovember 17, 2025
UpdatedNovember 17, 2025
ByKlemens Raab
Trust funds refer to the employee\’s portion of withheld income and FICA taxes. Employers are required to hold this money \”in trust\” for the IRS, not use it for any other purpose. Misusing these funds is considered a serious violation of fiduciary duty.
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Resolving Payroll Tax Debts
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