1. Happy Carpet Cleaning Inc. collects FIT, OASDI and Medicare taxes from its employees by withholding them from their pay. However, Happy Carpet Cleaning Inc. does not pay these amounts to the Federal government when they are due. It waits until the end of the calendar year to pay them so that it can maximize its cash during the year. It believes that this practice does not affect its employees because it will be paying the taxes at the end of the calendar year to the Federal government. Is it right for Happy Carpet Cleaning Inc. to do so? Please comment on this practice.
1. Happy Carpet Cleaning Inc. collects FIT, OASDI and Medicare taxes from its employees by withholding them from their pay. However, Happy Carpet Cleaning Inc. does not pay these amounts to the Federal government when they are due. It waits until the end of the calendar year to pay them so that it can maximize its cash during the year. It believes that this practice does not affect its employees because it will be paying the taxes at the end of the calendar year to the Federal government. Is it right for Happy Carpet Cleaning Inc. to do so? Please comment on this practice.
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