Many employers utilize third-party payroll service providers to complete some—or all—of their payroll and associated tax duties. Payroll outsourcing services allows companies to avoid dealing with heavily regulated tasks including withholding and reporting, as well as paying social security, Medicare, and income taxes. However, companies should remember that they hold ultimately responsibility for federal tax payments, meaning that the company is liable for any penalties and interest that are incurred. Accounting firms such as CRI offer a savvy solution for payroll outsourcing since our CPAs are familiar with tax regulations and updates.
Before using any payroll service provider, CRI encourages you to follow the below two payroll outsourcing tips.
- Confirm that your company’s address is on record with the IRS as the employer’s address. Then, if there are any issues, the IRS will mail correspondence directly to you.
- Confirm that your payroll service provider is utilizing the EFTPS (Electronic Federal Tax Payment System) and register for your own PIN. You can then periodically verify that your company’s payroll tax payments are being made.
Questions? Or looking for an accounting firm to handle your company’s accounting outsourcing? Contact CRI’s accounting outsourcing team.