by 
The Curious Bag
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The law requires employers to withhold payroll taxes from employees' paychecks. These taxes, along with the employer's portion, must be paid in a timely manner to avoid fines. If an employer fails to pay these taxes, the government imposes a payroll tax liability.
Circumstance
Regardless of whether the non-payment is intentional or due to a lack of funds, a payroll tax liability is created against any employer who neglects to withhold or pay her payroll taxes timely.
Time Frame
Micro-businesses may need to file payroll tax reports and pay their taxes yearly. The majority of small businesses are required to file payroll tax reports and pay their taxes monthly. Large businesses may be required to pay their taxes the day following each pay date.
Creation
A payroll tax liability is generally imposed the day after the payroll tax report or deposit is due. At this point, the government may evaluate interest, fines and penalties.
Employee Taxes
Employee taxes include federal, social security, Medicare and state and local taxes (if applicable).
Employer Taxes
The employer is required to pay social security, Medicare and federal and state unemployment taxes.
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