Saturday, May 19, 2012

IRS GIVES EMPLOYERS THREE TIPS ON PAYROLL OBLIGATIONS

If your business uses a third-party service provider to handle payroll tax duties, the IRS has three tips for you.

1. Remember that you, the employer, are ultimately the responsible party for the deposit and payment of federal tax liabilities. You may transfer tax payments to the service provider to make the deposits, but you bear the final responsibility for payment.

If the third party fails to make the tax payments, the IRS will look to you for the taxes, plus any penalties and interest due.

2. The IRS will use the address of record for any correspondence related to your account. The IRS strongly suggests you do not change the address of record to that of the payroll service provider. Using your business address will enable you to stay informed of tax matters relating to your business.

3. Choose a payroll service provider that uses the Electronic Federal Tax Payment System (EFTPS). You can register with the EFTPS system to get your own ID number to verify payments.