Be Smart About Outsourcing: 4 Tips for Outsourcing Payroll
Posted on July 30, 2013
Many companies partner with payroll providers to ensure employees and payroll taxes are paid correctly and on time. Outsourcing these administrative functions allow organizations to focus on driving the success of their business. Although many payroll providers take good care of their clients, there are, unfortunately, some who do not have their clients’ best interests at heart.
Tips for outsourcing payroll
When payroll providers fail to take care of their clients’ best interests, it reflects poorly on providers everywhere and undermines the trust that other payroll companies have worked hard to build. Here are four tips to help protect your company and be smart about outsourcing:
# Enroll in the Electronic Federal Tax Payment System (EFTPS), a free service that gives employers safe and easy online access to their tax payment history. This enables companies to monitor whether their payroll provider is properly carrying out their tax deposit responsibilities. Visit www.eftps.gov to enroll.
#2 Don’t substitute the provider's address for your company’s address. Although employers are allowed to make such a change, the IRS recommends that employers continue to use their own address as the address on record with the tax agency. Doing so ensures that the employer will continue to receive bills, notices and other correspondence from the IRS. It also gives employers a way to monitor the payroll provider and spot any improper diversion of funds.
#3 Become familiar with the tax due dates that apply to employers, and use the Small Business Tax Calendar to keep track of these key dates.
#4 Ensure the payroll service provider is trustworthy before you decide to work with them. Only hire providers that are bonded. Ask for references from current clients. Find out if they will provide you with detailed reports on taxes that have been paid.
Paycor: a partner you can trust
It can be hard to know which providers are trustworthy. You can feel confident partnering with Paycor for the following reasons:
* We are a bonded HR and payroll company
* We assume liability for any tax errors, as long as clients have provided all necessary information
* We provide detailed quarterly Tax Filing Client Activity Reports showing all impounded funds, liabilities and payments made, so you can rest assured knowing your taxes have been filed on time
Learn more about what Paycor can do for your organization: speak with a Paycor representative about how outsourcing payroll and tax filing can improve efficiency, reduce compliance risks and give you more time to devote to running your business.
Source: Internal Revenue Service