Payroll Service Providers (PSP)

The Spring SSA/IRS Reporter includes a useful article offering tips for organizations that use payroll service providers. A payroll service provider (PSP) can be an excellent option for employers that are looking for assistance with payroll processing and payroll tax deposit requirements. However, it is important to remember that the responsibility for timely filing and payment still lies with the employer. The IRS can hold you and your business ultimately responsible for unpaid taxes, or unfiled or late files returns. The IRS offers a few tips if you use a payroll service:

  1. Check to see if your payroll service is listed on the IRS Payroll Service Providers page. The listed providers have passed IRS testing requirements [Click here to see the full list].
  2. Know your tax due dates. The IRS offers Tax Calendar options that can help [Tax Calendar].
  3. Review your payroll tax reports for accuracy before they are filed.
  4. Enroll in EFTPS. You will be able to login and see the tax payments made under your EIN, and make missed payments, if necessary.
  5. Keep your organization’s address as the address of record with the IRS. This way you are sure to see any correspondence from the IRS and make sure that a response is made quickly.
  6. If you suspect your PSP is not complying with regulations, file a complaint with the IRS using Form 14157.

As always, Atchley & Associates, LLP is happy to answer questions or assist you in any way we can.

Reference. Publication 1693 (Rev. 6-2015) Catalog Number 15060W Department of the Treasury Internal Revenue Service www.irs.gov

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