Federal payroll taxes have two parts: the trust fund portion and the non trust fund portion. If your employer is a corporation, the non trust fund portion is discharged because this is the part which your employer matches; 1/2 of your social security and medicare. The IRS uses IRC 6672 to pierce the corporate veil if he is the willful and responsible officer, then the trust fund portion; your withholding, the 1/2 social security and medicare eg the portion that was taken from your wages: all of these wil be assessed under his social security number. If he is a sole prop, he will be responsible 100%
Bankruptcy will only extend the statute date of the Federal Tax Lien.
Report him to the Employment Development Dept just in case he says that you are an independent contractor. Then report him to the IRS so they can issue a FTD (Federal Tax Deposit) alert/
Atl least he is candid about the payroll taxes. At times like these, don't be surprised if he asks his employees to become shareholders or partner. If the bottom line does not improve, consider looking for another job because he will have catch up problems and if your workers comp is large, it means that your industry has a higher incidence of filing claims.
Its incidences like these is why SSA fund is running low. The funds will be there for you. Obama wants you to trust him this because its not your fault
Retired IRS Revenue Officer