Hopefully if you have employees, you’re using a payroll service to help you process accurate paychecks and file and pay your employer taxes on time. These services come in the form of either a built-in module within your accounting software or a third-party company. Regardless of how the service is delivered, it’s important to understand exactly what you’re getting. You need to know whether your payroll processor is actually paying your employer taxes and filing the tax forms with the government on your behalf or whether they’re just providing you the forms and numbers to do so yourself.
If you’re not sure which type of service you have, here are some suggestions. Look for tax forms noted with words like ‘for your records only, do not file’, look for tax payments coming out of your bank account in addition to the regular payroll check amounts, or look for tax deposit notices outlining the dates and types of taxes paid on your behalf. These typically mean that the payroll service provider is doing all filings and payments for you. If you don’t see any of these items, it’s time to call your payroll service provider and discuss exactly what they do for you. If you don’t want to handle the payments and filings, it might be time to upgrade to a plan where the processor takes care of these things on your behalf.
Just remember that as the employer, you’re ultimately responsible for filing and paying your taxes on time so it’s always a good idea to check behind anyone who’s doing these tasks for you.