A Little Mistake that Cost an Employer $174,896.30

Your Free “15 Point Critical Services to Demand From Your Payroll Company Checklist” will show you how to avoid large penalties like these.

A U.S. District Court in Ohio has upheld penalties assessed by the IRS agent against F.E. Schumacher Co. Inc. totaling nearly $175,000 (plus interest) for failure to deposit payroll taxes using the Electronic Federal Tax Payment System (EFTPS) as required by 26 USC 6302(h).

The three biggest payroll companies are just that, payroll companies. The laws are constantly changing and by doing only payroll that means the firm is not owned, managed and often doesn’t even employ a CPA.

The result is you’re not getting the complete picture. Just as in the case in Ohio, that employer was not aware he had to transmit payroll taxes via EFTPS until it was too late. At Payroll Specialists we assume the liability on the payroll taxes we process.  We’ll defend you against the IRS and even attend an IRS audit on your behalf. By having a CPA backed payroll company you can avoid being the next horror story in a federal court case.

The benefit to you of  Payroll Specialists being owned by a Certified Public Accountant is that you’re updated through periodic newsletters about changes in payroll related laws and regulations, as well as other accounting updates. You would have known that:

“A taxpayer that does not make deposits as required is considered to have made an underpayment of deposit.”

                                                                                    Conclusion of F.E. Schumacher Co. Inc v. U.S.

We use one of the largest tax databases in the world to reference current tax laws and perform online research. What new laws and regulations are you willing to live without?

The Sacramento Business Journal Warns Against Trying to Save Money by Doing it Yourself

“Small-business owners often make the mistake of trying to do everything themselves so they can save money. But usually they don't have the expertise to do their own accounting or marketing, and they end up wasting a lot of time and effort trying to scale a steep learning curve. As a result, they don't have time to spend on the core parts of their businesses, and even their strengths begin to suffer. They burn themselves out and spread themselves too thin."                                                                             Sacramento Business Journal. March 28, 2003

By trying to do their own payroll on purchased software or even with a payroll department you run the risk of making very expensive mistakes.

Payroll Specialists will let you do what you do best…run your own business. We’ll assume the tax liability for the payroll and possibly help you avoid an assessment of $175,000.