Tax Compliance
All employers incur the mandatory Social Security and Medicare taxes, and must deduct these from employees wages as well. Employers should also deduct state and federal unemployment taxes and make quarterly payments to the IRS or state agency to stay in compliance. Payroll providers guarantee these deductions are properly taken and the payments are made on behalf of your employees, they also keep detailed records that they provide to you each pay period for auditing and tax purposes. At the end of every pay period you do not have to worry about owing these things and late payments because your provider has taken care of this for you.
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