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IRS Urges Employers to Choose Carefully Their Payroll Service Provider

Updated: Sep 19, 2022




Recently the IRS issued a statement reminding employers to be careful when it comes to outsourcing your payroll responsibilities. There are many individuals, as well as companies large and small which offer payroll solutions. Not all of these resources are trustworthy, reliable, and sound. It's important for employers to realize when you hire a third party to handle your payroll processing you are not fully transferring your liability to that party. Most payroll providers, especially independent processors, provide an excellent service for a great value. However, if trouble with the government arises, those agencies will look to the employer for restitution, not the payroll company.


In the words of the IRS, "Most third-party payroll services do a good job helping small businesses meet their deadlines and payroll obligations", said Eric Hylton, Commissioner, Small Business/Self Employed Division. "But each year some employers fall prey to unscrupulous third-parties that fail to send the IRS the taxes entrusted to them. We are vigilant in pursuing these third parties, but too often their clients – the employers − are left on the hook. The IRS wants all employers to take the necessary steps to protect themselves."


Automatic Business Computing has been successfully processing payroll and carrying-out the associated tasks for 40 years. Over that span, we have served thousands of small businesses. It has quite literally been our life. We are truly dedicated to our clients and take our responsibilities to them extremely serious. Those four decades of experience have taught us some things you can't learn in any other way, and have also proven our commitment. We have strict controls in place to ensure compliance and integrity are the highest priority of the many tasks we perform.


In addition, David and I are IRS Authorized Reporting Agents. To achieve that status we had to undergo extensive vetting from the IRS and even submit fingerprints! Yes, the IRS has all our fingerprints on file. This designation allows us to significantly represent our clients before the IRS and even sign tax returns on their behalf. The IRS memo suggests, "Other third parties, such as payroll service providers (PSPs) and reporting agents (RAs) may be right for many employers." At ABC Workforce, we offer a service which provides an outstanding combination of competency, value, technology, and integrity.


Please give us a call and see what we can do for you!



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