Between the end of one month and the 15th day of the next month, the balance in the employer's business bank account is getting smaller and smaller. An employee prepares the next payroll and correctly computes the necessary withholding taxes. The employer is supposed to pay accumulated employment taxes on the 15th of the next month. Payday is the last day of the month. However, the employer has used the funds withheld from employees to pay some of the business' bills. He hopes that enough of the customers owing money will pay their debts. If that happens, the checking account will have enough in it to pay the federal deposit on the 15th of the month. Is the employer acting ethically? After all, he says he intends to have the money in the account for the deposit.
Between the end of one month and the 15th day of the next month, the balance in the employer's business bank account is getting smaller and smaller. An employee prepares the next payroll and correctly computes the necessary withholding taxes. The employer is supposed to pay accumulated employment taxes on the 15th of the next month. Payday is the last day of the month. However, the employer has used the funds withheld from employees to pay some of the business' bills. He hopes that enough of the customers owing money will pay their debts. If that happens, the checking account will have enough in it to pay the federal deposit on the 15th of the month. Is the employer acting ethically? After all, he says he intends to have the money in the account for the deposit.
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