Payroll Tax Processing/Filing

Although we aren't a great role model for any processing, we handle our taxes in house here. After PR198, we process AP520, AP150, AP161, a custom check printing program, AP170, AP175, AP265. We also use a custom program to send state taxes via ACH, using the output from AP161. We have 2 individuals who balance and submit our state taxes - we withhold in all 50 states.

Stephanie,

What about the reporting part of it? It looks like you have the paying part of it above, but what about reporting all of the employee taxes to the appropriate fed, state, locals, etc?

Jeff

That depends on your unique situation - depending on the number of ees/amount withheld, your pay frequency - you may need to report per pay period, quarterly or annual for reconciliation purposes. I assume your third party processor would be able to provide your specific information. We're monthly pay frequency, so we report monthly, quarterly and annually depending on the state. Additionally, depending on the number of employees you're reporting, you may be able to upload your files on line, or via a CD, manually via the state website, or even by paper.

I was just wondering if you had a process for reporting yourself without help from a third party. I would think that would be a grueling process to take on yourself.

We use a third party for both, but I'm not sure what the cost savings would be to just cut out the paying portion.

Jeff

The hardest part is determining your responsibility - which is why I said your third party administrator should be able to help with that. I would think (hope) that you would be provided copies of whatever filing they do for you, so you should be able to determine frequency and requirements. The reporting piece is actually pretty easy if you know your responsibilities. That being said, you'd certainly need to have someone who understands the tax world, and can manuever around the various websites, etc. Lawson provides multiple reports that are already formatted and/or produce appropriate files (i.e. PR299 for annual filing) - you just need to know which ones, and how often you'd need to file them.

We are a PEO and are in same situation of handling taxes manually for almost all 50 states. Recently our accounting department have explored some automated tax processing software solutions (MasterTax & BSI) and decided to go with MasterTax. we are currently in process of implementing MasterTax.