{"ok":true,"canonical_url":"https://dealroom.so/glossary/payroll-tax","api_url":"https://dealroom.so/api/public/glossary/payroll-tax","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"payroll-tax","term":"Payroll tax","group":"Reading the business","definition":"These are taxes employers withhold from employee wages (like federal income tax, Social Security, Medicare) and also pay themselves (like unemployment, employer share of Social Security/Medicare).","what_it_means":"Unpaid or mismanaged payroll taxes are a major red flag during due diligence, indicating poor financial controls or even fraud. You must verify the seller is current on all payroll tax obligations via IRS transcripts and state records, as you could inherit these liabilities post-closing.","url":"https://dealroom.so/glossary/payroll-tax","official_sources":[],"related":[{"slug":"irs-transcripts","term":"IRS transcripts (4506-T)","url":"https://dealroom.so/glossary/irs-transcripts"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"tax-return","term":"Tax return","url":"https://dealroom.so/glossary/tax-return"}],"related_questions":[{"question":"What if the business I am buying has unfiled tax returns or overdue payroll taxes?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-am-buying-has-unfiled-tax-returns-or-overdue-payroll-taxes"},{"question":"What if the business I'm buying has unfiled tax returns or overdue payroll taxes?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-unfiled-tax-returns-or-overdue-payroll-taxes"},{"question":"Do unfiled tax returns or overdue taxes prevent SBA approval?","url":"https://dealroom.so/sba-7a/questions/do-unfiled-tax-returns-or-overdue-taxes-prevent-sba-approval"},{"question":"If the acquired business has a history of unfiled or overdue payroll taxes, will this automatically disqualify my SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/if-the-acquired-business-has-a-history-of-unfiled-or-overdue-payroll-taxes-will-this-autom"},{"question":"If I have unfiled tax returns or overdue taxes, will that prevent SBA 7(a) loan approval?","url":"https://dealroom.so/sba-loans/basics/if-i-have-unfiled-tax-returns-or-overdue-taxes-will-that-prevent-sba-7-a-loan-approval"},{"question":"What if the business I'm acquiring has pending tax audits or unresolved tax issues?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-has-pending-tax-audits-or-unresolved-tax-issues"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Payroll tax","url":"https://dealroom.so/glossary/payroll-tax","source_type":"DealRoom Data"}}