"The days of comingling funds for payroll taxes with the general business account are at an end. The federal government is seeking to collect some $10 billion in unpaid payroll taxes by rendering employers vulnerable to criminal prosecution, as well as civil court liability, for delaying or not paying their employees' taxes," said Eric Nemeth, former Senior Trial Attorney for the District Counsel of the Internal Revenue Service and now Partner with the Varnum Tax Group.

Nemeth adds that businesses can expect the IRS to scrutinize "company decision makers," including the founder, president, CEO, CFO, company management who approved allocations of funds or signed checks and even members of the board of directors if apparent they were aware of using withholding money owed the IRS for other payments.

To avoid falling into the employment tax trap, Nemeth offers these recommendations:

-- Keep the payroll and general business accounts separate. Comingling these funds clouds what is the government's money and what belongs to your company.

-- Be honest about the viability of your business. Companies who have difficulty covering payroll taxes gamble on filing tax returns later when they have the funds. They'll now face paying significant penalties for late filing of their quarterly and tax return payments.

-- Pay attention to payday warning signs. Just covering net payroll checks means it's time to adjust cash flow management. Business owners can start by understanding that payroll taxes are not the company's money.

President Obama is asking for a 5.3 percent increase in IRS funding and increasing the number of enforcement IRS agents by 800.