For employers who use outside payroll services – cheaper may not always be better!June 17, 2014
Many employers outsource their payroll and related tax duties to third-party payers such as payroll service providers and reporting agents. Reputable third-party payers can help employers streamline their business operations by collecting and timely depositing payroll taxes on the employer’s behalf and filing required payroll tax returns with state and Federal authorities.
Though most of these businesses provide very good service, there are, unfortunately, some who do not have their clients’ best interests at heart. Over the past few months, a number of these individuals and companies around the country have been prosecuted for stealing funds intended for the payment of payroll taxes. The IRS reminds businesses that outsource payroll duties, the employer is still responsible for any taxes and penalties owed as a result of any issues caused by third parties payroll providers.
That’s why it is so important to carefully screen potential providers of payroll services. Cheaper may not always be better in this case. Call us for more information. We can help.
Written by: Doug Rodrigues