Secret Techniques Used by Your Payroll Processing Company
How does your payroll processing company protect your interests?
Your payroll processing company has the responsibility of balancing your employee taxes; but with businesses being fined each year for late or incorrect payments, it is clear that many processors are not doing the job right. Here are a few of the secret techniques we use to protect your assets. Talk to the payroll professionals dealing with your company about these today:
- We set up monthly payments. The IRS strongly urges companies to use their online tax payment system. Your payroll processing system can be configured to withdraw taxes monthly and deposit them into your IRS account. This is essentially the easiest method of ensuring your payments are always capable of covering your obligations in a timely manner.
- The federal government does not track these monthly payments in the same way as annual installments. If there is a problem with your automated deposits, for instance, the IRS will not contact you before your taxes are fully due to let you know that you have fallen behind. If your business is relying on regular deposits, have at least two people checking the balance to make sure they are being made as expected.
- We, at times, take on your tax liability. There are a couple of different types of payroll processing companies, and they all operate a bit differently from one another. A Professional Employer Organization (PEO), like Einstein, uses its own Employer Identification Number (EIN) to file taxes on your behalf as if they are filing taxes for their own staff. When using a PEO, both the employer and the payroll professionals share tax liability.
- The two other types of processing companies are: Reporting Agents (RAs) and Payroll Service Providers (PSPs). These file paperwork using the employerâ€™s EIN. They share no liability for taxes. This has led to fraudulent activities; such as, some unscrupulous companies taking the contributions and disappearing. Fortunately, the IRS has been apt in prosecuting them, but in the meantime the employer remains responsible for paying their own taxes and any interest due on late payments.
- We are experts in preventing our clients from incurring fines. The IRS estimates that every one in three companies face payroll-related penalties every year. With so many rules regarding payment, compensation, and taxes ready to trip up clueless business owners, it is easy to make a mistake. The smallest details can determine whether you are compliant or not. Therefore, sometimes it is best to hand over the job to trustworthy tax filing experts.
Administrative duties, such as handling payroll, are among our main businesses at Einstein. We use the most up-to-date tools and we know the techniques that every particular industry benefits from to the maximum. Let us put them to use for you.
Call 770-962-1700 today to take advantage of the secrets our top-notch payroll processing company provides today.