GitLab

lugols.com
Outsourcing payroll tasks can be a sound organization practice, however ... Know your tax duties as an employer
frantech.ca
Many companies contract out some or all their payroll and associated tax responsibilities to third-party payroll provider. Third-party payroll company can streamline organization operations and help meet filing due dates and deposit requirements. Some of the services they offer 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 work taxes with state and federal authorities.
  
  Employers who outsource some or all their payroll duties ought to think about the following:
  
  - The employer is ultimately accountable for the deposit and payment of federal tax liabilities. Despite the fact that the may forward the tax amounts to the third-party to make the tax deposits, the employer is the responsible celebration. If the third-party fails to make the federal tax payments, then the IRS might examine penalties and interest on the employer's account. The company is liable for all taxes, charges and interest due. The company might also be held personally responsible for specific unpaid federal taxes.
• If there are any concerns with an account, then the IRS will send out correspondence to the employer at the address of record. The IRS strongly recommends that the company does not change their address of record to that of the payroll company as it might substantially limit the employer's capability to be informed of tax matters involving their company.
• Electronic Funds Transfer (EFT) should be utilized to deposit all federal tax deposits. Generally, an EFT is made utilizing Electronic Federal Tax Payment System (EFTPS). Employers need to ensure their payroll suppliers are utilizing EFTPS, so the employers can confirm that payments are being made on their behalf. Employers need to sign up on the EFTPS system to get their own PIN and use this PIN to regularly validate payments. A red flag ought to increase the first time a company misses a payment or makes a late payment. When a company registers on EFTPS they will have on-line access to their payment history for 16 months. In addition, EFTPS permits employers to make any additional tax payments that their third-party service provider is not making on their behalf such as estimated tax payments. There have been prosecutions of individuals and business, who acting under the appearance of a payroll company, have taken funds planned for payment of employment taxes.
  
  EFTPS is a safe and secure, accurate, and simple to utilize service that supplies an immediate verification for each transaction. This service is provided 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 web or by phone. To find out more, companies can register online at EFTPS.gov or call EFTPS Customer Service at 800-555-4477 for an enrollment kind or to talk to a customer support representative.
  
  Remember, employers are ultimately accountable for the payment of earnings tax withheld and of both the company and worker portions of social security and Medicare taxes.
  
  Employers who think that a bill or notification received is an outcome of a problem with their payroll company should get in touch with the IRS as quickly as possible by calling the number on the costs, composing to the IRS office that sent the costs, calling 800-829-4933 or checking out a regional IRS office. For additional information about IRS notices, bills and payment alternatives, refer to Publication 594, The IRS Collection Process PDF.