The Internal Revenue Service recently announced that come January, 2014, employers that contract with third-party payroll providers are to become part of a program to help fight fraud through enhanced deposit monitoring.
Third party payroll service providers are required by law to notify all their clients at least every quarter that while the third party provider is paying in the employer’s payroll taxes, it is the employer who is ultimately responsible for all payroll tax liabilities. The IRS strongly encourages employers to monitor payroll service provider deposit practices through the Electronic Federal Tax Payment System (EFTPS) to make sure the provider is making those tax payments .
With this announcement, as part of a new nationwide effort, the agency will now automatically generate EFTPS personal identification numbers and send them to provider clients enabling them to monitor electronic deposits by the third parties.
Third party batch-provider payroll services that have had activity on EFTPS in the past 12 months but don’t have access to EFTPS.gov are to receive inquiry PINs in January according to the IRS. The IRS also plans to contact third-party payroll providers by e-mail regarding this new program.
Time & Pay has been utilizing the EFTPS for our customers for a number of years, encouraging our clients to easily confirm payment of their federal payroll taxes if they so choose. We at Time & Pay are all in favor of any program that will help eliminate fraud in our industry and look forward to the IRS simplifying a process that we have been using for quite some time.
About Time & Pay:
Time & Pay is a professional payroll service provider located in Johnson City, TN. We service businesses of all sizes and types throughout the United States. Founded in 1992, Time & Pay provides businesses with complete payroll services , guaranteed payroll tax compliance, automated timekeeping systems and services, pay-as-you-go worker’s comp, human resource management systems and services, and more. We provide our customers with the cost effective tools you need to better manage your payroll, your employees and your business. Time & Pay’s services guarantee you will save money, time and aggravation and we back them up with the customer service you expect and deserve. Contact us today to learn why business owners throughout the country are saying:
“Time & Pay! Why would you do payroll any other way?”