Special deposits and trust accounts.

(a) If any employer fails to withhold or truthfully account for or remit the taxes withheld or fails to file deposit statements, the Department may serve notice requiring such employer to withhold and deposit such taxes in a bank designated by the Department, in a separate account in trust for and payable only to the Department.

(b) The employer shall deposit such taxes with the designated bank on the last day of each of the payroll periods of the employer as defined in § 113.3 (relating to computing withholding of Commonwealth personal income tax).

(c) The Department will notify the depository bank of the time or times the employer would have ordinarily made payments of withheld tax, and the bank shall forward on or about such times, to the Department, such funds as shall have been deposited by the employer. The amounts forwarded by the bank shall be credited against the tax liability of the employer. Nothing in this section shall excuse an employer from timely filing of all returns and statements nor from payment of any interest or penalties which may become due or assessed. Notice shall remain in full force and effect until notice of cancellation is served on the employer and the depository bank by the Department.