TIPS FOR EMPLOYERS WHO OUTSOURCE PAYROLL

   Although outsourcing to third parties can streamline business opportunities, the IRS reminds employers that they are liable for paying tax liabilities. Recent accusations have inquired individuals & companies who-act under the guise of a payroll service provider, have stolen funds intended for payment of employment taxes make it important that employers who outsource payroll understand the following information.

A. It is the responsibility of the employer for the deposits and payment of federal and tax liabilities. If the third party fails to make the federal tax payments the IRS may assess penalties and interest. The employer is liable for all taxes, penalties and interest due. However, the IRS can also hold the individual liable for certain unpaid federal taxes.

B. If the employer has an issue with an account, the IRS will send a correspondence letter to the address they have on record. And they strongly suggest you do not change the address of the payroll service provider , reason being is to keep you informed of legal tax matters regarding your business.

C. IRS suggest that using a Payroll service provider that uses the Electronic Federal Tax Payment System is the best way to go.

Comments

  1. UnknownDecember 28, 2012 at 9:49 PM

    All the tips sounds very interesting and practical. I will definitely follow these tips.

    Click this link

    ReplyDelete

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