IRS posts third-party payroll video

The IRS has posted a third-party payroll compliance video. Many employers hire third-party payroll service providers to perform their payroll processing functions and tax-related duties, including making employment tax deposits. Watch “Monitoring Your Outsourced Payroll Duties on EFTPS” at: https://www.youtube.com/watch?v=0w2VMnNiTgg to learn about:

  • Using an EFTPS Inquiry PIN to monitor tax deposits;
  • The benefits of creating a separate EFTPS account;
  • Setting up EFTPS notifications.

The employer, generally, remains liable for any unpaid employment taxes, including any penalties and interest resulting from any underpayment, even if they use a third-party payroll service provider. Note, this may not apply to employers using Certified Professional Employer Organizations (CPEO). Visit Outsourcing payroll and third-party payers and www.EFTPS.gov for additional information. (IRS Tax Exempt Government Entities, July 10, 2018.)

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