Legal Question in Bankruptcy in New Jersey
my buissnes doesnt have the money for payroll i am shutting down do i have to pay employees
Asked on 6/03/10, 10:09 am
1 Answer from Attorneys
Stephen Tsai
Stephen Tsai Law Offices
I am assuming you are doing business as a corporation, partnership or LLC. If your business files bankruptcy, your employees will be creditors just like other creditors. They will have claims against the bankruptcy estate. However, if you failed to pay the withholding taxes to the IRS, you are personally liable to pay them, so you must pay those. There are possible criminal ramifications for failing to pay those.
Answered on 6/15/10, 9:20 am