Business Owner Indicted for Withholding Employee Tax Dollars
A Houston Business Owner’s Alleged Scheme
AP Photo/Alex Brandon
FILE – The Robert F. Kennedy Department of Justice Building is seen Friday, June 9, 2023, in Washington.
A Houston business owner, Joseth Limon, 48, has been accused of withholding hundreds of thousands of employee tax dollars. According to the U.S. Department of Justice, Limon allegedly failed to file tax returns for his business and pay over-taxes his company withheld from employee paychecks.
The Alleged Scheme
Limon had allegedly been the owner of Platinum Employment Group, Inc., since 2013, supplying temporary laborers to businesses in the Houston area. Between 2016 and 2018, the company paid more than $3.5 million to its employees and withheld $450,000 from the employees’ paychecks. However, Limon allegedly failed to pay the employment taxes that Platinum withheld from its employees’ paychecks and failed to file any employment tax returns on behalf of Platinum.
The Legal Requirements
Business employers are generally required to withhold federal income tax from employees’ wages. Employers must report wages, tips, and other compensation paid to an employee by filing the required tax return to the IRS, according to the federal agency. The company allegedly did not pay any of the trust-fund taxes owed, or file any Forms 941 for any of the calendar quarters from 2016 to 2018. Employees’ W-2 forms were not transmitted to the Social Security Administration, it’s alleged in court documents.
The Consequences
If convicted, Limon faces a maximum penalty of five years in prison and up to a $250,000 fine, according to the justice department.
FAQs
**Q: What is the alleged scheme?**
A: The alleged scheme involves withholding hundreds of thousands of employee tax dollars by not paying employment taxes and failing to file tax returns.
**Q: Who is the accused business owner?**
A: The accused business owner is Joseth Limon, 48, who allegedly owned Platinum Employment Group, Inc. since 2013.
**Q: What are the legal requirements for business employers?**
A: Business employers are generally required to withhold federal income tax from employees’ wages and report wages, tips, and other compensation paid to an employee by filing the required tax return to the IRS.
**Q: What are the potential consequences for Limon if convicted?**
A: If convicted, Limon faces a maximum penalty of five years in prison and up to a $250,000 fine.
