DO YOU USE A PAYROLL SERVICE? Beware!
Many small business owners outsource payroll with the assumption that it will be completed correctly and on time. Most times that is exactly what happens, but what if your provider misses a tax filing deadline? A reputable service would correct the problem covering any penalties and interest assessed by the IRS. Who is on the hook if they choose not to do the right thing? YOU ARE! The IRS is concerned with who owes them money, not who made the mistake.
As with all things IRS, there is an exception to this rule. If a payroll company is certified by the IRS (CPEO), you are protected. Is your provider certified? If you don’t find them on the list, I suggest giving them a call sooner rather than later.
The take away here is two-fold. Do your homework when choosing a payroll service. Check on their status yearly, if not quarterly. Verify that your payments have been remitted on time. In short, always, always cya.
#bookkeeping #smallbusiness #nailyournumbers #payrollservices #naileditbusinessservices