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Many
payroll services offer the option of filing state and
federal payroll taxes for your business. This can be a
great feature given the fact that the Internal Revenue
Service has reported that one out of every three
employers has been charged for a payroll mistake, with
total penalties reaching into the billions of dollars.
Typically, this payroll tax filing service is offered at
little or no cost. This is because the provider will
impound the tax due at the time paychecks are issued,
earning interest on the funds until the money needs to
be handed over to the government.
Just
because another company handles the payroll tax filing
does not mean you can stop worrying about making sure
the filings are timely and correct. While most services
assume responsibility for penalties resulting from
incorrect filing, your company may be liable for any
interest charges.
Keep
in mind that many companies will not calculate local or
city payroll taxes. Make sure to inquire about this if
it is a significant issue for you.
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