Trust Fund Tax
/ˈtrʌst fʌnd tæks/
Definitions
- (n.) A tax on funds withheld by an employer from employees' wages to cover payroll taxes such as Social Security and Medicare, which the employer holds in trust for the government.
Failure to remit trust fund taxes can result in personal liability for company officers.
Forms
- trust fund tax
- trust fund taxes
Related terms
See also
Commentary
Trust fund taxes are specifically segregated from general business funds, making them critical in cases of tax enforcement and liability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.