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Old 08-01-2014, 04:43 PM
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How to File Payroll Taxes for Another Company

I run my own bookkeeping service. I want to offer payroll services to clients. What forms do I file with the IRS to be able to file their payroll taxes (deposits and quarterly/annual reports)? I want to make sure I do this legally.



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Old 08-01-2014, 10:27 PM
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Originally Posted by notacpa123 View Post
I run my own bookkeeping service. I want to offer payroll services to clients. What forms do I file with the IRS to be able to file their payroll taxes (deposits and quarterly/annual reports)? I want to make sure I do this legally.
basically you need to check with your state Dept of Rev for your state payroll tax forms/schedules or etc; they vary from state to state.
Payroll taxes must be withheld from an employee's paycheck. This is required by law. Payroll accountants must hand these withholdings over to various tax agencies , IRS/State Dept of Rev., . ERs are required to report their payroll tax obligations and to deposit payroll taxes in a timely manner. Reporting requirements include;
Payroll tax deductions include; Federal income tax withholding based on EE’s W4 .
;Federal unemployment taxes (FUTA) form 940or 940EZ)
;Employer's quarterly payroll tax return (Form 941);
Annual Return of Withheld Federal Income Tax (Form 945) if required;
Wage and Tax Statements Form W-2 /W3 to SSA.

ERs are responsible for paying their portion of payroll taxes. These payroll taxes are an added expense over and above the expense of an employee's gross pay. The employer-portion of payroll taxes include ; Social Security taxes (6.2% up to the annual maximum); Medicare taxes (1.45% of wages);
For more info, you can visit the IRS website here; Employment Tax Due Dates

For e-payments to IRS; https://www.eftps.gov/eftps/



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Old 08-02-2014, 08:11 AM
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Maybe I asked the wrong question. I have 12 years experience as a full charge bookkeeper. I have been doing payroll for employers for 12 years. I understand about EFTPS, filing dates and deadlines, the employers portion of taxes, and that different states have different filing deadlines and forms. I understand about filing late and penalties.

Do I need to have a PTIN or be an enrolled agent to e-file another companies payroll taxes? Do I have to be registered/listed with the IRS as an enrolled agent so I can report these payroll taxes for other companies? For example form 8655. If I have to fill out and report form 8655, how do I become an enrolled agent or get a PTIN?



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Old 08-02-2014, 03:53 PM
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Originally Posted by notacpa123 View Post
Maybe I asked the wrong question. I have 12 years experience as a full charge bookkeeper. I have been doing payroll for employers for 12 years. I understand about EFTPS, filing dates and deadlines, the employers portion of taxes, and that different states have different filing deadlines and forms. I understand about filing late and penalties.

Do I need to have a PTIN or be an enrolled agent to e-file another companies payroll taxes? Do I have to be registered/listed with the IRS as an enrolled agent so I can report these payroll taxes for other companies? For example form 8655. If I have to fill out and report form 8655, how do I become an enrolled agent or get a PTIN?
Do I need to have a PTIN or be an enrolled agent to e-file another companies payroll taxes?========>>> Before you can e-file your federal Form 940 and Form 941/944 with the IRS, you first need to enroll in IRS e-file, the IRS agency’s electronic filing program. You only need to enroll once in order to file both federal Form 940 and Form 941/944. You can submit an enrollment request through the QuickBooks Payroll Setup interview.I guess for submitting/efiling f 941s to the IRS, you do not need PTIN. However, aaslongas you prepare payrolls and Federal Payroll Tax Forms using Quickbooks for example, for several clients as a Self-employed Bookkeeper, you now have to have an EIN. So when you go to submit Form 941s via E file , you have to apply for a PTIN to do this. . but I think it is an issue with QB as you are able to e-file clients’ 941s through another source without having an EIN # but you can use your SSN#( but I guess you have already your own EIN# and you can use it if you want). you must register for a PIN to be eligible to transmit 940s, 941s and 944s electronically., you must register for a PIN if you do not already have one. This PIN is assigned by the IRS and replaces your signature on the paper form. The IRS requires a separate PIN for each person who electronically "signs" the 941. After requesting your PIN, you should expect a response from the IRS within 7-10 days. Then, you can electronically file Form 941.I guess you need to contact the irs for more accurate info if yu need a PTIN for efiling form 941s to the IRS(if you are required to sign /efile for 941s as a tax preparer, then you should a PTIN instead of your Soc Sec #). Frequently Asked Questions: Do I Need a PTIN?

Also, as an EA/ a CPA / or a tax consultant(a state level tax accountant) , you may efile another companies’ payroll taxes;you need a PTIN. But to efile payroll taxes to the IRS, you do not have to be a tax consultant, an EA/ a CPA.


Do I have to be registered/listed with the IRS as an enrolled agent so I can report these payroll taxes for other companies?========>>As mentioned above.

For example form 8655. If I have to fill out and report form 8655, how do I become an enrolled agent or get a PTIN?=======>>>>>>>>> Reporting agents are companies ,not individuals, that perform payroll services for other businesses; RAs assist employers in making required tax deposits and tax information filings to the federal government and to state and local governments. The service has prescribed Form 8655 as the appropriate authorization for use by a taxpayer to designate a reporting agent to perform the Make Federal Tax Deposits and other Federal Tax Payments , including using the Electronic Federal Tax Payment System or etc.So as mentioned previously, unless you ar an EA/ a CPA/ tax attorney, who must use on U.S. federal tax returns or claims for refund submitted to the IRS. Yu, ad a bookkeeper submitting 941s electronically to the irs, do not need a PTIN.Form 8655 has nothing to do with E credential; EAs are the only federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS like cpa/ tax attorney.to become an EA, the license is earned in one of two ways, by passing a comprehensive examination which covers all aspects of the tax code, or having worked at the IRS for five years in a position which regularly interpreted and applied the tax code and its regulations. All candidates are subjected to a rigorous background check conducted by the IRS .


Note; There is a difference between E File & E Pay . E Pay(EFTPS) requires your client’s 4 digit PIN. E File requires your 10 digit PIN.You must make a seperate application to the IRS for the 10 digit PIN for E File. Attorneys and CPA do not need to obtain a PTIN unless they prepare for compensation all or substantially all of a federal tax return or claim for refund. All EAs are required to obtain a PTIN. Also, the form cannot be e-filed by your business. The IRS requires that all businesses electronically file form 941 through an approved intermediary. A payroll service provider, i.e. QB, that is approved for e-filing and an authorized IRS Authorized Signatory are the two options available to businesses to e-file form 941. The intermediary agent handles the filing process once it receives all of the relevant information.



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Old 08-06-2014, 06:37 PM
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So this is how I qualify to be a paid payroll preparer for other companies using my bookkeeping service?



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Old 08-06-2014, 07:56 PM
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Originally Posted by notacpa123 View Post
So this is how I qualify to be a paid payroll preparer for other companies using my bookkeeping service?
Sorry it was my bad. You can file payroll tax returns without a license. Either the company owners can sign the Form 941s or you can sign the forms. The PTIN regulations require all tax return preparers who are compensated for preparing, or assisting in the preparation of, all or substantially all of a tax return or claim for refund of tax to register and obtain a PTIN.As a paid preparer, you must sign Form 941 and provide the information in the Paid Preparer Use Only section of Part 5 on For 941 if you were paid to prepare Form 941 and are not an employee of the filing entity. As a paid preparer, you need to enter your PTIN in the space provided. But you do not need an EFIN #.However, you do not need to complete this section of part 5 on F 941 if you are filing the return as a reporting agent and have a valid Form 8655 on file with the IRS. However,a reporting agent must complete this section if the reporting agent offered legal advice, for example, advising the client on determining whether its workers are employees or independent contractors for federal tax purposes.
Note; Although there are organizations that offer training and certification for bookkeepers, working as a bookkeeper does not usually involve a license or examination in the same way being a CPA or EA does. A bookkeeper may actually perform many of the same jobs as a CPA or EA, including preparing tax returns. Currently the only requirement to prepare tax returns professionally is that you register with the IRS and obtain a PTIN. The service has announced that soon it will begin requiring all tax return preparers who are not already attorneys, CPA’s or EA’s to pass a basic competency exam to obtain a PTIN. While anyone with a PTIN can prepare and file a tax return for you, only a CPA, EA or attorney can represent a client with the Internal Revenue Service.
Payroll Education, Payroll Training, Certification and Payroll Compliance News. | American Payroll AssociationHome



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