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Schlotzhauer & West, CPAs
Phone: 714-695-9173
Website: www.s-wcpa.com
Richard email: rwest@s-wcpa.com
Melissa email: mpentoney@s-wcpa.com
Maureen's yoga center has grown faster than expected, so she's considering using a third-party service for payroll processing and management.
Maureen consulted her tax professional and reviewed IRS Tax Tips for guidance. She found that she could best protect her business by hiring one of these services:
Certified professional employer organizations are generally liable only for filing employment tax returns and for making deposits and payments for the taxes their customers report on wages and other compensation.
Reporting agents are generally limited to depositing taxes via the Electronic Federal Tax Payment System (EFTPS). Employers remain responsible for ensuring that returns are filed and taxes are paid on time.
Section 3504 agents withhold, report, and pay employment taxes and share liability for federal tax withholding with the employer. Employer returns are filed using the agent's Employer Identification Number (EIN). Generally, customers must still file FUTA tax returns using their EINs.
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