The IRS Gives Advice for Companies That Outsource Their Payroll

The IRS has broadcasted their concerns with the recent accusations of individuals and companies who have posed as payroll service providers to steal employment tax payments from companies. In response to these events, the IRS has released advice for employers who are currently outsourcing their payroll.

All employers need to remember that they, not the outsourcing company, are held entirely responsible for paying federal tax liabilities. Even after an employer sends their tax payments to their payroll provider, the employer is held accountable for confirming the payment is made. If the third party does not make the federal tax payments, the IRS will go directly to the employer to evaluate interest costs and associated penalties - the payroll provider is not contacted. The IRS may also target specific individuals of the company considered at fault for the unpaid federal taxes.

If there are any issues with an account or with federal tax payments, the IRS communicates directly with the address on record. If an employer were to change the address on record to that of the payroll provider, they loose access to tax information and updates that directly affect their business.


With Optimum Solutions you are always in control of who pays your federal taxes, the amount that is deposited and when the payment is made. There are no complications with correspondence because everything relating to payroll is completed and processed at your company’s location.

Information for this article taken from the IRS News Room

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Vice President Robert Porter, Brandt Truck Line, Inc.

Very good product and documentation.