Payroll taxes are all taxes that are collected, by federal,
state, and local governments, based on salaries and wages paid
to employees. These taxes must be withheld from wages by all
businesses that have employees. These taxes are remitted on a
monthly or semi-weekly basis, depending on the quantity owed.
Businesses are also required to make regularly scheduled reports
to the Internal Revenue Service (IRS) and to state and local
taxing agencies about the amount of taxes owed and paid.
Businesses are not required to withhold payroll taxes on wages
paid to independent contractors. Self-employed persons are
responsible for paying their own payroll or income taxes
directly to the appropriate taxing entity.  Many small
businesses fall behind in paying these taxes or filing the
associated reports at some time during their existence. Such an
error is, however, very costly because significant interest and
penalties apply for late payment or nonpayment of payroll taxes.
In fact, the Trust Fund Recovery Penalty allows