IRS warns employers about payroll outsourcing fraud

Published Updated 2 Min Read

The Internal Revenue Service issued advice on Friday to employers who outsource their payroll duties to third-party service providers.

In a tax tips email, the IRS referred to recent prosecutions of individuals and companies that pretended to be payroll service providers and instead stole funds intended for payment of employment taxes. The IRS noted that the employer is ultimately responsible for depositing and paying federal tax liabilities.

Michael Cohn
Editor-in-chief, AccountingToday.com

Michael Cohn, editor-in-chief of AccountingToday.com, has been covering business and technology for a variety of publications since 1985. Prior to joining Accounting Today and WebCPA, he worked for … Read full bio


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