Navigating the complicated payroll tax system can be a tall order for even the best-equipped HR departments but failing to follow the requirements correctly can result in a hefty fine from the IRS. Complex payroll tax regulations and deadlines are constantly changing. Most tax agencies now require electronic tax payment and filing. There are many opportunities for errors when filing payroll taxes. Penalty and interest charges related to late tax payments are very high.
Our goal with LBMC Employment Partners, LLC, (LBMC EP) Payroll Tax Outsourcing is to provide growing companies with 100% accurate, cost-effective payroll tax solutions. We want to provide you with peace of mind and reduced risk in the complex area of payroll tax compliance.
Our program provides complete payroll tax processing including:
- Increased payroll tax efficiency for your company.
- Compliance with thousands of federal, state, and local deadlines, as well as all payroll and tax regulatory issues.
- Payment of all payroll tax liabilities on due date. Filing of all required payroll tax returns on behalf of customer.
- Automated systems and calendars to ensure no filing dates are missed.
- Response to all tax agency inquiries, including quick turn-around, tax agency follow-up, and thorough client communication.
- Tax specialists with years of experience and training in payroll taxation. Our program provides a specific point of contact for all payroll tax issues.
Payroll Tax Consulting Services
LBMC EP offers a complete line of Payroll Tax Consulting services. These services include:
- Complete response and resolution of payroll tax issues, including written/verbal correspondence with tax agencies, penalty abatement requests, complete follow-up with tax agency until resolution, and thorough client communication.
- IRS representation and negotiation services, including abatement requests, appeals, and installment agreements.
- Review of current payroll tax processes and recommendations to increase accuracy and efficiency. Areas of opportunity include:
- Electronic tax payments to save time and reduce risk of penalty.
- Set-up of required electronic tax filing to ensure compliance.
- Balancing techniques used to reconcile payroll system and tax payment data.
- Written documentation of payroll tax procedures.
- Specific recommendations to overall process.
- Analysis and payroll tax recommendation due to company growth, merger, and acquisition, such as experience rate transfer, new jurisdiction compliance, successor/predecessor opportunity, Form W-2 processing and reconciliation, and related payroll tax savings.
- Completion, submission, and follow-up of new payroll tax account applications.
- Research of state and local withholding requirements for new companies and/or employees.
- Training of new and existing payroll tax personnel.
Our Payroll Tax Consulting group has years of experience and training in payroll taxation. We eliminate the burden of payroll tax filing so you can focus on growth, customers, and products. Let LBMC EP focus on your payroll tax processing so you can focus on growing your business.
Benefits and Features of LBMC EP Payroll Tax Outsourcing
LBMC EP assumes responsibility for accuracy of payroll tax processing. Your exposure to fines, penalties, and even liens due to late filings or payments, is reduced.
LBMC EP keeps current with thousands of federal, state, and local tax jurisdictions and related filing requirements.
Your employee resources are free to focus on serving your clients and growing your business.
LBMC EP will respond to all tax agency inquiries and monitor until resolution regardless of circumstances. LBMC EP utilizes complete electronic payment and payroll tax filing capability. LBMC EP provides detailed client tax reporting and quarterly tax return packages. We also provide amended tax return filing as needed.
Five Major Types of Taxes
- Federal Income Tax: Every citizen must pay federal income tax as determined by their income. This money is deposited to the IRS by the employer.
- State Income Tax: States set their own rules for income taxes. Employers need to know the proper tax rate for each state where they have employees. This can become complicated for remote employees who may live in a different state than the company is based in.
- Local Taxes: Some cities, counties, or municipalities may have taxes that employers also need to deduct from their employees’ paychecks.
- Social Security Tax: Both the employer and the employee must pay this tax in order to fund Social Security programs. This tax is a big one, making up 6.2% of the Federal Insurance Contributions Act, or FICA.
- Medicare Tax: This tax goes to pay for health benefits under the federal Medicare program. A portion of an employee’s income must be deducted to pay this tax, and employers also have to pay.
For each of these types of taxes, the employer is responsible for calculating the proper tax amount and making deductions from employee paychecks. Even after the ink is dry on an employee’s carefully tabulated checks, the employer’s work is still not done. Employers must report their taxes on a variety of different tax forms and send the money to the appropriate agency. All of this must then be tracked for the employees’ W-2 forms at the end of the year.
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All content and services on this page are offered by LBMC Employment Partners, LLC. LBMC Employment Partners, LLC, is part of the LBMC Family of Companies and is an independent entity with services and products being provided exclusively by LBMC Employment Partners, LLC.