Outsourcing payroll duties can be a sound service practice, but ... Know your tax obligations as a company
Many companies outsource some or all their payroll and related tax tasks to third-party payroll service providers. Third-party payroll company can simplify company operations and assist meet filing deadlines and deposit requirements. Some of the services they supply are:
- Administering payroll and employment taxes on behalf of the company where the employer offers the funds at first to the third-party.
- Reporting, collecting and transferring work taxes with state and federal authorities.
Employers who outsource some or all their payroll obligations need to consider the following:
- The employer is ultimately responsible for the deposit and payment of federal tax liabilities. Despite the fact that the employer may forward the tax amounts to the third-party to make the tax deposits, the company is the accountable party.