HI… I'M MEL … AND I WORK FOR THE INTERNAL REVENUE SERVICE. IF YOU'RE AN EMPLOYER WHO OUTSOURCES PAYROLL DUTIES TO A THIRD PARTY… YOU… AS THE EMPLOYER… WILL GENERALLY REMAIN RESPONSIBLE FOR THOSE DUTIES. EVEN IF A THIRD PARTY TAKES CARE OF SOME OR ALL OF YOUR EMPLOYMENT TAX WITHHOLDING … REPORTING… AND PAYMENT OBLIGATIONS… YOU ARE STILL ULTIMATELY RESPONSIBLE IF ANY EMPLOYMENT TAXES ARE NOT TIMELY PAID. HERE ARE SOME TIPS TO KEEP IN MIND WHEN OUTSOURCING PAYROLL. WHEN A THIRD PARTY ENROLLS YOU IN THE ELECTRONIC FEDERAL TAX PAYMENT SYSTEM… OR E-F-T-P-S AS IT'S COMMONLY CALLED… TO MAKE THE FEDERAL TAX DEPOSITS ON YOUR BEHALF… YOU MIGHT RECEIVE AN INQUIRY PERSONAL IDENTIFICATION NUMBER… OR PIN. IF SO… IMMEDIATELY ACTIVATE THIS PIN TO MONITOR THE E-F-T-P-S PAYMENTS… AND ENSURE THE THIRD PARTY IS MAKING THE REQUIRED TAX DEPOSITS ON YOUR BEHALF. IF YOU HIRE A THIRD PARTY TO MAKE SOME … BUT NOT ALL … OF YOUR TAX PAYMENTS… YOU WILL NEED TO ENROLL IN E-F-T-P-S SEPARATELY TO MAKE THE REMAINDER OF THOSE PAYMENTS ON YOUR OWN. EVEN IF YOU USE A THIRD PARTY TO DEPOSIT ALL REQUIRED EMPLOYMENT TAXES… AND THEY PROVIDE YOU WITH AN INQUIRY PIN… IT'S STILL A GOOD IDEA TO ENROLL IN E-F-T-P-S SEPARATELY. ENROLLING SEPARATELY GIVES YOU THE ABILITY TO MAKE UP ANY MISSED DEPOSITS… AND IT GIVES YOU FLEXIBILITY IF YOU EVER NEED TO CHANGE PAYROLL COMPANIES IN THE FUTURE. IN ADDITION… ENROLLING SEPARATELY GIVES YOU THE OPPORTUNITY TO RECEIVE EMAIL NOTIFICATIONS ABOUT ACTIVITIES ON YOUR ACCOUNT… INCLUDING PAYMENTS MADE BY A THIRD PARTY. YOU WILL ALSO RECEIVE CONFIRMATION OF PAYMENTS MADE… CANCELLED PAYMENTS… RETURN OF PAYMENTS… AND REMINDERS OF SCHEDULED PAYMENTS. FOR MORE INFORMATION… GO TO I-R-S-DOT-GOV-SLASH-OUTSOURCING- PAYROLL