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Information for ADP Paychex ClientsHere's what ADP & PAYCHEX Don't Want You To Know:
"We earn tons of interest by withdrawing
taxes from client checking accounts, months in advance
of depositing them with the IRS or State Departments of Revenue and Labor."
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In some cases, ADP's Total Pay clients and Paychex's TaxPay clients are having their tax dollars taken out of their checking accounts a full 15 weeks before they are due.
Yes, according to IRS Publication 15, small businesses with quarterly withhholding taxes less than $2,500, do not have to pay these taxes over to the IRS until the last day of the month following the end of a quarter! For
example, taxes withheld from January 1, through March 31, don't have to be deposited with the IRS until April 30th.
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There's more! All Federal and State
Unemployment taxes are paid quarterly! While ADP and Paychex take unemployment taxes from your checking account every pay period, they hold these
funds until the payment date which is usually the last day of the month following the end of the quarter.
Read This: Small businesses with
annual withholding and matching employer taxes less than $50,000 are monthly payers. This means they don't have to deposit their withholding taxes at a bank
until the 15th day of the month following the month in which the taxes were paid.
So, why do ADP and Paychex withdraw these taxes so far in advance?
To earn interest on your tax dollars and improve their earnings and temporary cash flow all at your expense. This
amounts to a hidden charge that they do not want you to know about.
With our Payroll Plus service we advise you, in writing, when and
how much to pay the IRS or State Departments of Revenue or Labor. And we fill out the returns so all you have to do is print the check, sign the tax return
and put it in the mail. With our payroll service you won't pay your taxes one day before they are due.
I thought you would want to know what's really going
on with your money.
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| Payroll Quickfacts:
| Social Security tax rate: |
.062 |
| Medicare tax rate: | .0145 |
| Social Security Wage Base: | |
| 2004: | $87,900 |
| 2005: | $90,000 |
| 2006: | $94,200 |
| Federal Unemployment rate: | .8% |
| Georgia Unemployment rate: | 2.7% |
| Payroll Tax Deposit Due Dates: | See IRS Pub 15 |
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| Call for immediate help: 770-969-9850 |
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Information for ADP Paychex Clients
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| ©2007 Michael Johnston, CPA. All Rights Reserved. |
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