Taking Ownership of Your Tax Responsibilities as a Business Owner
It is common practice today for employers to outsource their payroll and related tax duties to an outside payroll service provider. Payroll companies are experts in taxes and can ensure that filing deadlines and deposit requirements are met, while streamlining business operations. Some of the benefits of outsourcing payroll are:
- Business owners can focus on their core business
- Gain access to industry expertise and technology
- Reduce costs and risks
- Improve operational efficiencies
There are compelling reasons for businesses to entrust their payroll to a trusted partner. An important thing for business owners to consider is the importance of understanding their responsibilities and that of their payroll service provider. The IRS and other government revenue collecting agencies hold owners and corporate officers personally liable for any unpaid payroll taxes, improperly filed payroll reports or failure to file payroll reports. Here are ways that you can protect your investment while enjoying the benefits of using a payroll service provider.
- Enroll in the department of revenue and unemployment websites for those states in which you have employees. Then, periodically monitor your accounts online. Quick links to agency websites can be conveniently found on our Employer Resource page. For federal payroll taxes, sign up for access to the Electronic Fund Transfer Program (EFTPS) at www.eftps.gov. This is a free service provided by the Treasury Department which gives employers access to view their payment history using their company’s FEIN. This website provides companies with a way to verify that their payroll vendor is making the scheduled tax deposits.
- Use your company address as the mailing address to receive IRS correspondence. You should review this correspondence and forward to your payroll vendor for further research. It may take some time to resolve issues with tax agencies, but be sure to follow-up on any notifications received by the IRS or any revenue collecting agency.
- Hire a reliable third-party payroll provider. Inquire about the company’s business control audit and ask for a copy. This will provide you with useful information to see what controls the organization has in place for the benefit of your business. If you are searching for a new payroll provider, ask for references. Learn from a current client about the service offering.
Nothing is more important than having trust in your vendors. Choosing a great partner is integral to the success of your business operations. Take the necessary steps to ensure your tax accounts are in good standing by “Inspecting what you expect” using the resources that the agencies provide.
At Payentry, we believe trust is everything. We engage with nationally recognized audit firms to review our controls, we serve thousands of employers and millions of employees and make it our priority to protect their most important assets. To learn more about our services and how we can help your business stay compliance, contact us at firstname.lastname@example.org.