Payroll Tax Management Originally printed in . . . Payroll Tax Management Stephen R. Sutter Payroll taxes form a sizable cost of doing business. Recent tax law changes are a source of concern to employers, because they have contributed to the complexity of withholding and reporting requirements.
Agricultural employers can cut payroll costs in two ways.
First, they may provide compensation that is not subject to employment taxes, such as educational and dependent care assistance plans. Second, they may institute systems, such as computerized reporting, that make paying wages to employees and complying with payroll tax requirements less burdensome. Most employers are concerned about payroll tax compliance, especially because penalties for noncompliance are stiff. An audit by a thorough IRS Revenue Agent usually includes review of payroll reports, general ledger, and the like, to be sure the employment tax returns correctly report the number of employees and amount of wages. For most individual payees, the TIN is their social security number.