Monitoring Your Outsourced Payroll Duties on EFTPS

Monitoring Your Outsourced Payroll Duties on EFTPS


HI, I’M MEL, AND I WORK FOR THE
INTERNAL REVENUE SERVICE. IF YOU’RE AN EMPLOYER WHO
OUTSOURCES PAYROLL DUTIES TO A THIRD PARTY,
YOU, AS THE EMPLOYER, WILL GENERALLY REMAIN
RESPONSIBLE FOR THOSE DUTIES. EVEN IF A THIRD PARTY
TAKES CARE OF SOME OR ALL OF YOUR EMPLOYMENT
TAX WITHHOLDING, REPORTING, AND PAYMENT OBLIGATIONS,
YOU ARE STILL ULTIMATELY RESPONSIBLE IF ANY
EMPLOYMENT TAXES ARE NOT TIMELY PAID. HERE ARE SOME TIPS
TO KEEP IN MIND WHEN OUTSOURCING PAYROLL. WHEN A THIRD PARTY
ENROLLS YOU IN THE ELECTRONIC FEDERAL
TAX PAYMENT SYSTEM, OR EFTPS
AS IT’S COMMONLY CALLED, TO MAKE THE FEDERAL TAX DEPOSITS
ON YOUR BEHALF, YOU MIGHT RECEIVE AN INQUIRY PERSONAL
IDENTIFICATION NUMBER, OR PIN. IF SO, IMMEDIATELY ACTIVATE THIS PIN
TO MONITOR THE EFTPS PAYMENTS, AND ENSURE THE THIRD PARTY
IS MAKING THE REQUIRED TAX DEPOSITS ON YOUR BEHALF. IF YOU HIRE A THIRD PARTY TO MAKE SOME,
BUT NOT ALL, OF YOUR TAX PAYMENTS, YOU WILL NEED TO ENROLL
IN EFTPS SEPARATELY TO MAKE THE REMAINDER OF THOSE
PAYMENTS ON YOUR OWN. EVEN IF YOU USE A THIRD PARTY
TO DEPOSIT ALL REQUIRED EMPLOYMENT TAXES,
AND THEY PROVIDE YOU WITH AN INQUIRY PIN,
IT’S STILL A GOOD IDEA TO ENROLL IN EFTPS SEPARATELY. ENROLLING SEPARATELY
GIVES YOU THE ABILITY TO MAKE UP ANY MISSED DEPOSITS,
AND IT GIVES YOU FLEXIBILITY IF YOU EVER NEED TO CHANGE
PAYROLL COMPANIES IN THE FUTURE. IN ADDITION, ENROLLING SEPARATELY
GIVES YOU THE OPPORTUNITY TO RECEIVE EMAIL NOTIFICATIONS
ABOUT ACTIVITIES ON YOUR ACCOUNT, INCLUDING PAYMENTS
MADE BY A THIRD PARTY. YOU WILL ALSO RECEIVE
CONFIRMATION OF PAYMENTS MADE, CANCELLED PAYMENTS,
RETURN OF PAYMENTS, AND REMINDERS OF SCHEDULED PAYMENTS. FOR MORE INFORMATION, GO TO IRS.GOV/OUTSOURCINGPAYROLL