Filing payroll taxes

Many payroll services offer the option of filing state and federal payroll taxes for your business.
Typically, this service is offered at little or no cost. This is because the payroll provider will impound the tax due at the time pay checks are issued, earning interest on the funds until the money needs to be handed over to the government.
Most services assume responsibility for penalties resulting from incorrect filing; however, your company may be liable for any interest charges.
Keep in mind that many companies will not calculate local or city payroll taxes. Make sure to inquire about this if it is a significant issue for you.
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