This is Jean Wetzler. I'm talking with Phyllis Grimes about outsourcing payroll duties.
Phyllis, what are the benefits of outsourcing payroll duties?
A payroll provider can help ensure forms are filed and deposits are made on time. This helps streamline business operations.
By using a payroll provider, small business owners and self-employed individuals can devote more time to their business instead of spending it on payroll duties.
Do you have some quick tips for a business who uses a payroll provider to handle payroll duties?
The most important thing to remember is that the business owner is ultimately responsible for filing and paying taxes timely, even if using a payroll provider to handle these duties. This includes withholding the proper amount of federal income tax, Social Security, and Medicare taxes for both the employer and employee portions.
We recommend that a payroll provider use EFTPS, the Electronic Federal Tax Payment System, which allows small business owners and self-employed individuals access to information about payments made on their behalf.
What about the address, should the business change the address so correspondence goes to the payroll provider?
When using a payroll service provider, keep the business address as the address of record on file with the IRS.
Do not allow your payroll provider to use their address for your tax returns and notices.
That way, you, the business owner, will still receive any tax related correspondence.
What resources are available for business owners if they need to know more?
A wide range of information is available on IRS.gov.
Simply do a search using the words "Outsourcing Payroll."
Thank you, Phyllis. I've been talking with Phyllis Grimes of the IRS.
This is Jean Wetzler.
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