Do You Outsource
Beware of Payroll Scams and Potential Penalties
Many businesses find it cost effective to outsource their payroll
functions to a third-party payroll company.
It is important to ensure that the company you are partnering with is
reputable, because ultimately itís your responsibility to pay federal tax
liabilities. If the third-party fails to make your federal tax deposits,
the IRS may assess penalties and interest that you, the employer, will be
responsible for paying.
When working with a third-party, choose a payroll service that uses the
Electronic Federal Tax Payment System (EFTPS). This way, you can log onto
the system and verify that the tax deposits were made on time.
Also, be sure to list your address on the account, so that the IRS will
send all correspondence directly to you, keeping you informed.