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Complying with Your Payroll Tax Obligations


Small business owners have a number of options when it comes to the methods they use to meet their tax obligations. The Electronic Federal Tax Payment System (EFTPS), however, has proven to be especially popular among small business owners, as it is equipped with features that can help employers in preparing and submitting their payroll taxes, whether they choose to do so themselves, of choose to hire a third party payroll service provider to file on their behalf. Getting a handle on your own payroll tax obligations can be difficult, so if you own a small business and have employees, it is important to contact experienced Florida payroll tax lawyer Ronald Cutler who can advise you.

Third Party Payroll Service Providers

Many companies choose to outsource their payroll-related tax duties, such as tax withholding, making tax deposits, and complying with reporting requirements, to third party payroll service providers. These entities can then help taxpayers:

  • Adhere to their filing deadlines;
  • Comply with deposit requirements;
  • Streamline their business operations; and
  • Administer payroll and employment taxes.

In addition to addressing these matters, third party payroll service providers are also uniquely equipped to collect, deposit, and report employment taxes with the proper authorities. These deposits must be made electronically, so many employers, whether they have outsourced their payroll duties to a third party or are fulfilling them on their own, use the Electronic Federal Tax Payment System (EFTPS). Although using a third party provider can be helpful to small business owners, particularly when it comes to complying with their tax obligations, it is still generally a good idea for employers to keep their address of record at their own place of business, as changing it to that of the payroll services provider could limit their ability to stay informed on important tax matters.

IRS Payroll Services Program

The EFTPS program helps business owners monitor their tax responsibilities even if they have already retained a payroll service provider. As a secure and accurate way to comply with payroll tax obligations, the EFTPS also provides taxpayers with immediate confirmation following a transaction, while also allowing employers to make and verify tax payments 24 hours a day, seven days a week electronically.

Employers who use this service can also utilize it to:

  • Make up any missed tax payments;
  • Continue making tax payments in the event that they change their payroll service provider; and
  • Update their information to receive notifications about scheduled payments, canceled payments, and returned payments.

Even when third party payroll service providers use EFTPS to make tax payments on a company’s behalf, that company will still usually be assigned an EFTPS Inquiry PIN. Once activated, these PINs allow employers to keep an eye on their payroll service providers and ensure that they are making all necessary tax payments. Business owners who suspect that their payroll services provider is committing fraud when it comes to their federal taxes can file a complaint with the IRS.

Call Our Office for Help with Your Case 

If you own a business and have questions about your payroll tax obligations, please call 386-490-9949 today to speak with dedicated Florida payroll tax lawyer Ronald Cutler, P.A. about your concerns.