Bandura CPA, LLC

Bandura CPA, LLC

Certified Public Accountant

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Outsource Payroll and They Rob You? THE IRS STILL WANTS ITS MONEY

Jeffrey Sykes' victims may have gotten grim satisfaction yesterday when he received an 8-year sentence for stealing withheld taxes from his payroll service. Still, grim satisfaction doesn't help them get right with the IRS.

Mr. Sykes' payroll tax service had about 1,100 clients, according to reports. Instead of using client money to pay their payroll tax obligations, he apparently spent it on a more important obligation: himself.

Unfortunately, the IRS still wants the money. The victims get to pay their payroll taxes twice: first to Mr. Sykes, and then to the tax man. That's why employers should sign up with the Electronic Federal Tax Payment Service. Even if you outsource your payroll, EFTPS lets you go online to make sure that your provider is remitting your tax deposits on time. These online visits should be part of your internal control routine, because nobody can really afford to pay payroll taxes twice.

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