Every year, more than eight million penalties are assessed by the IRS because of incorrect or delinquent remittance of federal payroll taxes. Most people do not think that taxes can accrue such heavy penalties, but they can. That is why payroll accounting can help.
Over 500,000 small businesses use Paychex payroll, human resources and employee benefits products. This allows for better payroll processing and no errors in any way regarding it. Payroll services can help keep you out of danger as far as taxes go.
Outsourcing payroll processing is the single best way to prevent in house payroll fraud. It will be harder to get in trouble with the IRS this way as well. There are two types of federal taxes involved in payroll. Employee withholding taxes are deducted from the total compensation of the employee. They are paid on behalf of the employee.
The next one is called employer payroll taxes. Payroll taxes are not withheld from the employee. However the employer is responsible for their payment. They are paid by the employer.
Payroll accounting can be helpful to small and medium sized businesses. They need payroll providers that offer employee access tools such as a web portal and automated telephone system, just so they can have ways of making sure their payroll is properly set up.
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