Rules and compliance
What happens if payroll taxes are paid late?
Short answer
Late payroll tax deposits trigger IRS penalties of 2% when up to 5 days late, 5% at 6 to 15 days, and 10% after 15 days, plus interest. Unpaid withheld taxes can also lead to the Trust Fund Recovery Penalty, which makes owners and other responsible people personally liable for the balance.
Answered by Dushyant Hirwani · Updated November 3, 2026Need help with payroll services?
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