IRS Notice on Third Party Payroll Payments

According to an IRS notice released in 2014, third parties that directly pay another entity’s payrolls can be held liable for the full amount of taxes required to be withheld but not paid to the government, subject to a 25% limitation.  An employer should file Form 4219, Statement of Liability of Lender, Surety or Other Person for Withholding Tax with the IRS for every quarter where such a liability is incurred to notify the IRS that a third party is paying or supplying wages to employees.
Remember, it is ultimately you, not the third party, that is held responsible for ensuring all taxes are paid. With an in house system, like Optimum Solutions, you have control of who pays and when your taxes are paid. Watch a free software demo today to learn more!

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Human Resources Administrator Steven Hicks, West Virginia Media

Another division of our company is going through a change from one big computer system to another but they're having a heck of a time and it has made me very very appreciative of how helpful and agreeable everyone at Optimum has been. Thanks so much!!