Question

What are penalties for not making payroll tax deposits (FICA, FED Tax)?

a) 10% penalty on the unpaid tax amount
b) 15% penalty on the unpaid tax amount
c) 20% penalty on the unpaid tax amount
d) 25% penalty on the unpaid tax amount

Answer 1

The penalty for not making payroll tax deposits can be a 10% penalty on the unpaid tax amount.

Step-by-step explanation:

The penalties for not making payroll tax deposits (FICA, FED Tax) vary depending on the circumstances. However, a common penalty is a 10% penalty on the unpaid tax amount. This means that if an employer fails to make the required payroll tax deposits, they may be subject to a penalty of 10% of the unpaid tax amount.