How can my payroll taxes not be paid? – I hired a payroll company

Many local businesses are finding that their payroll company has not been paying their federal and state payroll taxes.  How can this happen?  Most companies in the payroll processing industry follow a practice called impounding.  As payroll taxes are accrued with each pay, the payroll company transfers the cash from the clients account into their account and then pays the actual taxes when they are due.  The problem is, if the payroll company fails to pay those taxes, the tax agency (IRS or the state) will come after you, the client to collect those taxes.  Meanwhile the payroll company has your money and you will have to pursue them to get your money back.  BMC does not impound payroll taxes, we electronically submit funds from your account to the tax agencies, so you always know if your payroll taxes have been submitted.  Want more information, contact us at 301-698-0795 or email to brett@bmcaccounting.com
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