Employees checks. Read the 501c3 law.
I just did.
I didn't see anything about WAGES paid to employees.
What Dixon did was FAIL to withhold taxes from his employees, saying they could deal with the government(s) on their own.
AFAIK none of the employees failed to pay taxes.
The feds were miffed because Dixon did not jump thru the right hoops, NOT with the 'fact' that taxes were not paid.