Even if you hire a payroll service to handle your salary and wages, you are still responsible for paying the withholding taxes. As explained at Smallbusiness.com, the IRS recommends monitoring your company’s tax payments through a free service provided by the U.S. Department of Treasury called the Electronic Federal Tax Payment System.
“In most cases, the small business remains liable for any unpaid employment taxes,” the website states. “This includes any penalties and interest resulting from underpayment, even if you use a third-party payroll service provider.”
