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Product ID: 391152EAU
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Why You Shouldn't Trust Your Payroll Company to Satisfy Your Payroll Tax Responsibilities

OnDemand Webinar (86 minutes)

Most companies in today's world outsource payroll functions. Small companies prefer sending all payroll administrative tasks off site for a fixed cost. Larger companies rely upon payroll companies to manage the increasing complex task of handling payroll, taxes, vacation, retirement plan deferrals and so on. However, by passing off these duties, your company is not passing off the liabilities associated with these tasks. Your company faces liabilities along with potential penalties and interest assessments if the payroll taxes are not deposited in a timely manner to the federal and state governments. In fact, the Internal Revenue Service regularly pursues companies that fail to deposit the tax withholding without regard to whether they used a payroll company. Of more concern is the potential assessment by the IRS by against you, personally, as an employee and responsible person of the company.

This on-demand webinar will brief you on what services payroll companies offer, how to select a reputable company, how to spot red flags and what you can do to limit your company's liability, as well as your potential personal liability. Additionally, we will discuss our recent experience with payroll tax matters, correction options and what to expect when dealing with the IRS. For example, we recently worked with the IRS in regards to a $600,000 penalty assessment following gross financial mismanagement as the result of a mentally ill controller and a series of unusual circumstances. The story shows that sometimes a look at the facts and a creative argument can make a serious difference.

Learning Objectives:

  • You will be able to discuss what services a payroll company generally offers.
  • You will be able to identify payroll tax outsourcing risks.
  • You will be able to discuss protecting yourself and your employer.
  • You will be able to review ongoing potential employer and personal liability risk.


Jewell Lim Esposito, Esq., Constangy, Brooks & Smith, LLP
David M. Mohl, Esq., Constangy, Brooks & Smith, LLP



• What Services a Payroll Company Generally Offers

• What Are an Employer's Payroll Tax Responsibilities?

• How Does the Payroll Tax World Work?

• Who Is a Player?

Payroll Tax Outsourcing Risks

• What Are the Employer's Responsibilities?

• What Are the Risks an Employer Faces When Using a Payroll Company?

• What Are the Personal Risks and Penalties for Employees?

• Potential Problems and Penalties

• Real Life Example: Government Contractor's Payroll Company Embezzled Payroll Tax Amounts and Then Closed Shop

Protecting Yourself and Your Employer

• Choosing a Payroll Company

• Warning Signs to Look For

• Compliance Procedures and Areas of Follow-Up

• When the IRS Comes Calling

Discovered a Problem?

• Correction Programs

• How to Get Back on the Right Track

• Ongoing Potential Employer and Personal Liability Risk

• Real Life Example: Creative Negotiation With the IRS When Controller's Mental Illness Results in Years of Cover-Up and Gross Financial Mismanagement


• Questions and Answers

• Comments