Senate Moves to Regulate Payroll Service Providers APA, NPRC Combine Efforts to Suggest Reasonable Terms
While employers want some measure of protection when they entrust their employment taxes to a payroll service provider, overly stringent protections could drive all but the largest service providers out of business business and make it necessary for the surviving providers to significantly increase their fees. That was the main point presented by the National Payroll Reporting Consortium and APA in recent meetings with the U.S. Treasury, the IRS Taxpayer Advocate, and the Senate Finance Committee. The two associations also provided alternative legislative language to more specifically address the issues raised in the relationship between employers and service providers, in particular setting limits on the amount of the surety bond that should be required.
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