Tips for Outsourcing Payroll

Are you planning to outsource payrolls to payroll service provider?

Outsourcing payroll duties to third-party service providers can streamline business operations, but the IRS reminds employers that they are ultimately responsible for paying federal tax liabilities.

Recent prosecutions of individuals and companies who – acting under the guise of a payroll service provider – have stolen funds intended for payment of employment taxes makes it important that employers who outsource payroll are aware of the following three tips from the IRS:

  1. Employer Responsibility The employer is ultimately responsible for the deposit and payment of federal tax liabilities. Even though you forward the tax payments to the third party to make the tax deposits, you – the employer – are the responsible party.If the third party fails to make the federal tax payments, the IRS may assess penalties and interest. The employer is liable for all taxes, penalties and interest due. The IRS can also hold you personally liable for certain unpaid federal taxes.
  2. Correspondence If there are any issues with an account, the IRS will send correspondence to the address of record. The IRS strongly suggests you do not change the address of record to that of the payroll service provider. That could limit your ability to stay informed of tax matters involving your business.
  3. EFTPS Choose a payroll service provider that uses the Electronic Federal Tax Payment System. You can register on the EFTPS system to get your own PIN to verify the payments.

From IRS website

Accounting software

Most popular small business accounting software in U.S. are:

Sage Peachtree Complete Accounting

QuickBooks Pro (Intuit)

AccountEdge

 

Sage Peachtree Accounting

New features in 2012
- Copy Transactions
Enable you to create a new transaction based on a previously saved one (Quotes, Sales Orders, Proposals, Sales Invoicing, Purchase Orders, Purchase Invoices,  General Journal Entries).
- Expanded Payroll Fields
There are now a maximum of 40 fields available for each, up from 30 employee fields and 10 employer/company fields.
- Management Center Enhancements
-  Business Intelligence
- Vendor Management Center

 

Products

Sage Peachtree Pro
Sage Peachtree Complete
Sage Peachtree Premium
Sage Peachtree Quantum

 

QuickBooks

Products

QuickBooks Online Essentials
QuickBooks Pro
QuickBooks Pro Plus
QuickBooks for Mac

QuickBooks Online Plus
QuickBooks Premier
QuickBooks Premier Plus
QuickBooks Enterprise Solutions

 

AccountEdge

Compay offer small business accounting software for Mac, Windows, and Mobile.

Products

AccountEdge Pro for Mac
AccountEdge Basic for Mac
Network Edition
AccountEdge for Windows
AccountEdge Mobile