Employers must choose carefully when selecting a payroll service provider

The IRS reminds employers to carefully choose their payroll service providers following continuing concerns that some disreputable organizations can fail to deposit employment taxes, leaving businesses vulnerable to unpaid bills.Many employers outsource their payroll and related tax duties to third parties. Using a reputable firm or group can protect employers from fraud.The IRS news release on this topic provides more information for sharing with employees, clients and partners. It also explains steps to protect employers from unscrupulous third parties.And, the IRS’s new third-party payroll providers fact sheet provides details about the different types of third-party providers available to employers:

• Payroll Service Provider

• Reporting Agent

• Section 3504 Agent

• Professional Employer Organization

• Certified Professional Employer Organization