08/31/2026
Payroll taxes are not a cash-flow tool.
A Seattle restaurant owner recently pleaded guilty after failing to pay more than $1.4 million in employment taxes over a 10-year period, including more than $1 million withheld from employee paychecks.
The lesson for business owners is clear: amounts withheld for federal income tax, Social Security, and Medicare are not funds to use for rent, inventory, or payroll. Delaying deposits can quickly lead to mounting penalties, personal exposure, IRS enforcement, and—in willful cases—criminal consequences.
If your business is behind on payroll tax deposits, don’t wait for another quarter to pass. Getting current on ongoing deposits and addressing the past-due balance early can preserve more resolution options.
The earlier you act, the more options you may have.
```
The Seattle case was announced by the U.S. Attorney’s Office on July 27, 2026. ([justice.gov](https://www.justice.gov/usao-wdwa/pr/seattle-restaurant-owner-pleads-guilty-failing-pay-over-employment-taxes-more-14?utm_source=openai))