{"id":1415,"date":"2013-07-19T14:28:04","date_gmt":"2013-07-19T19:28:04","guid":{"rendered":"http:\/\/hoorfarlaw.com\/blog\/?p=1415"},"modified":"2013-07-19T14:28:04","modified_gmt":"2013-07-19T19:28:04","slug":"tips-for-employers-who-outsource-payroll-duties","status":"publish","type":"post","link":"https:\/\/hoorfarlaw.com\/blog\/?p=1415","title":{"rendered":"Tips for Employers Who Outsource Payroll Duties<\/a>"},"content":{"rendered":"

\"payroll\"<\/a><\/p>\n

Many employers outsource their payroll and related tax duties to third-party payers such as payroll service providers and reporting agents. Reputable third-party payers can help employers streamline their business operations by collecting and timely depositing payroll taxes on the employer’s behalf and filing required payroll tax returns with state and federal authorities.<\/p>\n

Though most of these businesses provide very good service, there are, unfortunately, some who do not have their clients’ best interests at heart. Over the past few months, a number of these individuals and companies around the country have been prosecuted for stealing funds intended for the payment of payroll taxes. Examples of these successful prosecutions can be found on IRS.gov.<\/p>\n

Like employers who handle their own payroll duties, employers who outsource this function are still legally responsible for any and all payroll taxes due. This includes any federal income taxes withheld as well as both the employer and employee’s share of social security and Medicare taxes. This is true even if the employer forwards tax amounts to a PSP or RA to make the required deposits or payments. For an overview of how the duties and obligations of agents, reporting agents and payroll service providers differ from one another, see the Third Party Arrangement Chart on IRS.gov.<\/p>\n

Here are some steps employers can take to protect themselves from unscrupulous third-party payers.<\/p>\n