Glossary · Reading the business
In short
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).
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.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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