Comments on: Truth about Payroll Service Providers

By: payrollpro

payrollpro — Mon, 22 Jun 2009 15:25:54 +0000

Depending on the business you are in and the person in charge of processing payroll, this just an advice on how to handle cashflow within your company. If your company wants to pay the taxes 3 months or sometimes one year in advance, it’s in your discretion. Thanks for commenting.

By: Trishan

Trishan — Sat, 30 May 2009 16:49:51 +0000

I think this is pretty dangerous advice for small business owners. If you are so tight on cash flow that you need to keep payroll taxes for an extra 15 days, then are you really going to have the funds in your bank account to pay the taxes when they are due? I’d worry about not meeting your obligations to various state & local agencies. And how much time are you spending managing that cash flow to ensure that the correct amount of funds are available monthly or quarterly as needed? Finally, the penalties for not making required remittances would probably far exceed the tiny amount of interest (if your bank account even earns interest which is unlikely) that you’ll get from keeping the cash.

By: Carmen

Carmen — Fri, 20 Feb 2009 17:15:12 +0000

This is a great idea to follow not only to assure that the payroll service provider pays your taxes on time but you have to look at all the other aspects of the payroll service. (Your 10 things you need to know before switching payroll services is a great tool). The employer would need to decide if it’s worth using a payroll provider with no live customer service at the cost of not getting tax money debited until the due date. Also, the employer needs to make sure the total amount due is in bank account at the time of due date.