IRS Proposes New Regulations for Third-Party Payroll Providers

by Frank L. Brunetti on March 4, 2013

When it come to ensuring Social Security, Medicare and federal income taxes are deducted from workers' paychecks and contractors are classified correctly, existing tax law places these obligations solely on employers. However, new guidelines proposed by the Internal Revenue Service may shift some of the liability onto third-party payroll providers, employer organizations and employee leasing companies when violations occur.