What is it?
As an employer, you are responsible to pay both federal and state payroll taxes on all of your employees. Usually this is done by the payroll company using a method known as impounding. Impounding taxes is when the payroll company holds onto the payroll taxes from you bank account and then makes payments to the IRS and state when the taxes are due.
Why can this be a problem?
When a payroll company impounds taxes, there is not verification that the money is actually paid to the IRS or the state. Without verification, the payroll company can and have held on to the taxes for their own personal use, leaving the employer with outstanding taxes, interest, and penalties.
How Todd Payroll is different
At Todd Payroll, unlike many other payroll companies, we will never impound your taxes. Taxes will be debited from your bank account at the time due, and paid directly the IRS and state. Not only does this allow the employer to hold on to their money longer, collecting interest, it also gives the employer verification these monies were actually paid, as the employer can review their bank statement.