Payroll tax filing benefits

One of the main benefits for using APlus is our support from Payroll tax side and although it may be obvious, sometimes it’s good to lay out what we can take care of for you and those items that you will still have to deal with. Listed below are our basic responsibilities, along with your own from the Federal Government. Of course, we are here to help answer any questions you may have about additional filing regulations etc. and we’ll do our very best to keep you up to date on the latest policies and procedures. 

What do our payroll services typically include:

1. Maintaining payroll records
2. Calculating the appropriate pay amount after withholdings and taxes
3. Mailing the checks or managing direct deposit
4. Providing W-2 forms and other annual tax documents to employees
5. Submitting necessary tax reports and information to the IRS, state, and local tax offices
6. Managing unemployment reporting and taxation
7. Handling withholding payments to retirement plans and other entities

Employer Responsibilities for Taxes

Employers who outsource some or all of their payroll responsibilities should consider the following:

1. The employer is ultimately responsible for deposit and payment of federal tax liabilities. Even though the employer may forward the tax amounts to the third-party to make the tax deposits, the employer is the responsible party. If the third-party fails to make the federal tax payments, then IRS may assess penalties and interest on the employer’s account. The employer is liable for all taxes, penalties and interest due. The employer may also be held personally liable for certain unpaid federal taxes.
2. If there are any issues with an account, then the IRS will send correspondence to the employer at the address of record. The IRS strongly suggests that the employer does not change their address of record to that of the payroll service provider as it may significantly limit the employees ability to be informed of tax matters involving their business.
3. Electronic Funds Transfer (EFT) must be used to deposit all federal tax deposits. Generally, an EFT is made using  Electronic Federal Tax Payment System (EFTPS). Employers should ensure their payroll providers are using EFTPS, so the employers can confirm that payments are being made on their behalf. Employers should register on the EFTPS system to get their own PIN and use this PIN to periodically verify payments. A red flag should go up the first time a service provider misses a payment or makes a late payment. When an employer registers on EFTPS they will have on-line access to their payment history for 16 months. In addition, EFTPS allows employers to make any additional tax payments that their third-party provider is not making on their behalf such as estimated tax payments.
4. The employer needs to ensure that they obtain all account numbers for state income withholding, local income tax, and state unemployment for each state where their employees are working.