Three Tips for Employers Outsourcing Their Payroll

Three Tips for Employers Outsourcing Their Payroll
Outsourcing payroll duties to third-party service providers can streamline business operations, but the IRS reminds employers that they are ultimately responsible for paying federal tax liabilities. It is very important that employers who outsource payroll are aware of the following three tips:
1.Employer Responsibility The employer is ultimately responsible for the deposit and payment of federal tax liabilities. Even though you forward the tax payments to the third party to make the tax deposits, you – the employer – are the responsible party.
2.Correspondence If there are any issues with an account, the IRS will send correspondence to the address of record. We strongly suggest you do not change the address of record to that of the payroll service provider. That could limit your ability to stay informed of tax matters involving your business.
3.EFTPS Choose a payroll service provider that uses the Electronic Federal Tax Payment System. You can register on the EFTPS system to get your own PIN to verify the payments.

For Free Consultation call or email
Amare Berhie, Senior Tax Accountant
ABA Tax Accounting
Phone 612-424-1540
Toll free 866-936-0430

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