As a small business owner in Michigan, you have a great many issues to deal with as you go about operating your business. Depending on your size, you may do much of the work yourself, or may have the assistance of employees in various roles.
While being "hands on" can be vital to the success of your business, especially if you need to work with your customers on a personal basis, there are times when hiring outside help is essential. If you need plumbing or electrical work, you want the assurance that comes from hiring a professional to complete a task.
And some jobs are sufficiently technical and tedious, that you may not want to do it out of fear of making a mistake or the task may be time consuming and it eats up too much of your time.
Payroll processing may be one of those tasks. It is essential, as your employees may become irate and potentially sue, if you fail to properly pay them on time. And there is another concern, that of the Internal Revenue Service.
While hiring a payroll service provider may save you time, it does not provide protection from liability should that service fail to properly execute its responsibilities. A recent report from the Treasury Inspector General for Tax Administration (TIGTA), has found some providers are not "compliant with payments and filing requirements."
With any provider of payroll services, you should keep in mind that your must monitor your account and be certain that all payments are in fact being made. The IRS requires providers state the rules for these payments and notes, "Please be aware that you are responsible for the timely filing of employment tax returns and the timely payment of employment taxes for your employees, even if you have authorized a third party to file the returns and make the payments."
Penalties for failure to remit payroll taxes can be severe, and monitoring these payments can be done by using the U.S. Treasury Department's Electronic Federal Tax Payment System (EFTPS).
Accountingtoday.com, "IRS Cracks Down on Payroll Service Providers," James Paille, May 20, 2015