Outsourcing Payroll Duties > 자유게시판

Outsourcing payroll responsibilities can be a sound business practice, but ... Know your tax duties as a company

Many companies outsource some or all their payroll and related to third-party payroll company. Third-party payroll provider can improve company operations and help meet filing deadlines and deposit requirements. Some of the services they provide are:

- Administering payroll and work taxes on behalf of the employer where the company provides the funds initially to the third-party.
- Reporting, collecting and transferring employment taxes with state and federal authorities.

Employers who outsource some or all their payroll responsibilities must think about the following:

- The company is ultimately responsible for the deposit and payment of federal tax liabilities. Despite the fact that the employer might forward the tax totals up to the third-party to make the tax deposits, the company is the responsible party. If the third-party stops working to make the federal tax payments, then the IRS might examine charges and interest on the employer's account. The employer is responsible for all taxes, penalties and interest due. The employer may likewise be held personally liable for certain unsettled federal taxes.
- If there are any concerns with an account, then the IRS will send correspondence to the company at the address of record. The IRS highly recommends that the company does not change their address of record to that of the payroll service company as it might considerably limit the company's capability to be notified of tax matters including their organization.
- Electronic Funds Transfer (EFT) should be used to deposit all federal tax deposits. Generally, an EFT is used Electronic Federal Tax Payment System (EFTPS). Employers must guarantee their payroll providers are using EFTPS, so the companies can verify that payments are being made on their behalf. Employers should register on the EFTPS system to get their own PIN and use this PIN to periodically confirm payments. A red flag needs to go up the very first time a company misses a payment or makes a late payment. When a company signs up on EFTPS they will have on-line access to their payment history for 16 months. In addition, EFTPS allows companies to make any extra tax payments that their third-party supplier is not making on their behalf such as estimated tax payments. There have actually been prosecutions of people and companies, who acting under the look of a payroll company, have stolen funds planned for payment of work taxes.

EFTPS is a protected, accurate, and simple to use service that offers an immediate verification for each deal. This service is offered free of charge from the U.S. Department of Treasury and permits companies to make and validate federal tax payments digitally 24 hr a day, 7 days a week through the internet or by phone. For more details, employers can register online at EFTPS.gov or call EFTPS Customer support at 800-555-4477 for a registration kind or to speak with a customer support representative.

Remember, employers are eventually accountable for the payment of earnings tax withheld and of both the employer and staff member parts of social security and Medicare taxes.

Employers who believe that an expense or notice received is an outcome of an issue with their payroll company should get in touch with the IRS as soon as possible by calling the number on the costs, composing to the IRS office that sent the expense, calling 800-829-4933 or going to a regional IRS workplace. To find out more about IRS notices, costs and payment alternatives, refer to Publication 594, The IRS Collection Process PDF.