Ask Experts Questions for FREE Help !
Ask
    HarryR's Avatar
    HarryR Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 18, 2008, 11:29 AM
    Payroll Services
    I've been asked by one of my clients to start handling their payroll services for their employees? I checked and don't appear to need a license in Michigan. I've also called the IRS and the Department of Labor & Economic Development to seek more advise to ensure accuracy in this area. However... my questions were not completely answered.

    My questions are:

    1.) Should I obtain a bond or possible insurance to protect me & my business? I'm concerned for "possible" penalities from the IRS?

    2.) Would a bond or insurance cover me against financial penalties?

    My goal is to be compliant in all areas and also show due diligence regarding payroll services.

    Thank you!
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
    		  
    #2

    May 23, 2008, 06:28 AM
    Hello Harry:

    If Michigan says you don't need a license, then you don't. The IRS or any of the federal bureaucrats wouldn't know anything about state law. I wouldn't call them.

    Sure, you should have insurance. But, it won't protect you against penalties from the IRS. The only thing that will protect you there, is filing out your tax records correctly...

    By the way, they're NOT concerned with WHAT your business does... They're only concerned that YOU pay YOUR taxes for THAT business.

    There is NO bond or insurance that will protect you from those things. If you hire a CPA to do your taxes, that's the best defense I can think of.

    excon
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Deductions for payroll services [ 1 Answers ]

I had a household employee for a brief period over the first two quarters of 2007. I used a payroll service which handled all the withholding and check issuance, for which they charged me a fee. Are those fees deductible? If so, where do I deduct them? On which form, category, etc. ...

Payroll and payroll taxes [ 1 Answers ]

I'm completing a project for a high school accounting class. I need to know how to journalize the payment of payroll. I also need to know how to journalize the payment of the payroll taxes.

Payroll [ 6 Answers ]

I am going to be starting my own cleaning business and if I have flat rate, charging by the house, how should I pay my employees? :confused:

Payroll [ 2 Answers ]

The annual salaries paid each of the officers of Maxtun, Inc. follow. The officers are paid semimontly on the 15th and last day of the month. Compute the FICA taxes to be withheld from each officers on October 13, and December 29. Oct 13 Tate, jack, president Annual salary $120,000 What's the...

Payroll [ 3 Answers ]

What is the rule of thumb for determining the amount of income a company should pay out as "payroll." (for paying the correct amounts of Medicare, Social Security, etc. etc.). Looking for the generally accepted rule-of-thumb.. I can't remember it.

View more questions Search