Payroll Outsourcing Companies

"Payroll Taxes are Due, with Penalties and Interest"

The normal problems with payroll taxes are.

Taxes under deposited.

Taxes deposited late.

Read the notice from the IRS. If you don't have the first notice call the IRS and get all the information from them.

The IRS says you never filed a return and they have created a return for you. The IRS does not want that to happen so they always over estimate if they create a "Substitute Return" and file it for you.

Again send the IRS a copy of the return that you filed. If the return is wrong then send the IRS a corrected form such as a 941-C to correct the original filing. There won't be a penalty for late filing if in fact you filed an original return on time even if it was incorrect. A tip is if you cannot prepare the actual return on time, estimate it and file it.

Taxes under deposited.

Taxes deposited late.

The IRS will take the third payment and apply it to the second month's taxes but it is late so they charge a penalty. The penalties exceed the taxes missing. If you have never had a late payment the IRS is suppose to give you a free one anyway.

If you have a valid business reason that a penalty has occurred in spite of good due diligence on your part the IRS is suppose to abate the penalty. Understand that IRS employees may be gauged by how much revenue they bring in (the IRS vehemently denies this but ex IRS employees don't always). If not, seriously consider a payroll service provider that does.

Payroll Tax Penalties, When the IRS Sends a Letter

At present there are several payroll outsourcing companies offering value added services, taking care of the entire section of work dealing with your company's payroll system. Outsourcing Companies Are Well-equippedThe outsourcing companies that look after the payroll system have advanced technology to deal with the system completely.