Companies who rely on third-party vendors to make their federal and state payroll tax deposits need to be diligent when selecting the vendor. A bad choice can be very expensive.
Processing payroll and remitting the required federal and state income and employment taxes to the appropriate government authorities is burdensome. As a result, many companies delegate these tasks to a third-party payroll company. In most situations, this arrangement works out well. The payroll company withdraws the required funds from the company’s bank account and ensures that employees and the various government agencies are timely paid. This allows company management to focus on more important things, such as satisfying its customers/clients and making money. (more…)