Employers that outsource payroll tax duties remain liable for unpaid taxes, IRS reminds firms. Even if payroll agents abscond with the employment taxes or fail to make the required deposits or payments to IRS, employers are on the hook.
So take these steps to protect yourself if your business uses a payroll agent:
-Enroll in the Electronic Federal Tax Payment System so you can monitor deposits.
-Make sure all correspondence from IRS about payroll taxes goes to your address, not the agent’s. (A 2015 law aimed at protecting employers from crooked payroll agents requires IRS to send out confirmation notices when it receives an address change.)