Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Use Best Practices When Outsourcing Payroll
Author: Scarinci Hollenbeck, LLC
Date: July 31, 2013
Key Contacts
Back
Many companies, especially small businesses, prefer to use a reputable third-party firm for the task of outsourcing payroll. While this trend may free up more time and energy for business owners to focus on their operations, it can also create stress over tax compliance if owners do not take the proper steps to ensure their responsibilities are being carried out.
There have been a number of payroll fraud cases lately in which third-party providers fail to carry out their obligations to the company – such as collecting and depositing payroll taxes on the employer’s behalf and filing required payroll tax returns with state and federal authorities – thereby leaving the business facing federal tax liabilities. Whether the business itself faces sole liability or shares it with the third-party firm will vary by circumstance, but the process of correcting these errors can still be costly and tedious. Therefore, it’s important to implement a few safeguards to ensure compliance with federal laws.
For example, the IRS reports that companies that enroll in the government’s Electronic Federal Tax Payment System and require third-party providers to make deposits through this system can better monitor their accounts and ensure compliance. The portal enables employers to view their payment history, which can help them detect errors or mistakes on the part of the third party.
The IRS recommends that employers also continue using their address as the primary point of contact with the tax agency, rather than substituting it with the third party’s address. The IRS does allow businesses to list the payroll provider’s address on file and have correspondence sent to them. However, by ensuring that all correspondence is sent directly to employers, they can ensure that they receive all bills, notices and information from the IRS.
- Practices: Tax and Trusts & Estates, Sophisticated Estate Planning & Wealth Preservation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.