Blog Post

Top 5 Reasons Why You Should Outsource Your Payroll Taxes

Published on

November 16, 2020

By

by

Cathy Antle

  1. Payroll taxes have become so complex that it is a challenge to keep up with the ever-changing landscape of tax reporting requirements.  It is difficult for companies to have an employee solely dedicated to keeping up with the new laws.  When outsourcing your payroll taxes, you alleviate that burden.    It becomes the responsibility of the vendor to be up to date on new system and reporting requirements.
  2. By outsourcing your payroll taxes to CS3 Technology, Inc you no longer must collect, report, and deposit employment taxes with all the Local, State, and Federal authorities.  CS3 would be responsible for timely payments and filings.  CS3 would also be responsible to resolve any notices that could be issued during the coverage period.  I read several articles where the average penalties for small companies per year is almost $900 for late or invalid tax reporting.
  3. Timely rate changes for unemployment is something your company would no longer have to manage.  This is another area that has the potential for huge penalties or possibly big savings depending on which direction the rate change takes.
  4. Why get bogged down in those tedious bank reconciliations.  There are so many tax payments required these days it can add quite a few transactions to the process.  Outsourcing payroll taxes will resolve the reconciliation process and shift that responsibility to us.  Escheatment of outstanding tax payments goes hand in hand with bank reconciliations so you would no longer have that task to deal with either.
  5. Lastly, no more PTO scheduling conflicts.  As it stands now companies must ensure someone is always available to process tax payments and/or filings on a very strict timeline.  That vacation you had planned during Spring Break or the Thanksgiving Holidays would no longer be stress-free when there are tax deposits to be made.  Unplanned out-of-office absences are hard enough to manage but when the possible tax penalties for late filings could be in the thousands of dollars it raises the stakes even higher.  Take a load off and outsource your payroll tax filings to CS3 Technology, Inc. today.
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