Outsourcing some of your payroll processing can be a huge time and money saver. Assuming it doesn’t leave you in legal hot water.

IRS just released a new publication outlining the responsibilities your company still faces if it decides to outsource payroll related tasks like tracking and remitting employment taxes.

Most companies rely on their third-party processor to handle everything. But as IRS reminds us, if your payroll vendor screws up, goes out of business, or — worst case scenario — is crooked, you’re still on the hook for paying your tax liabilities.

Having turned the money over to the processor originally is no protection.

Get more details at IRS’ Headliner Vol. 243.

Tags: Employment Taxes, Outsourcing, Payroll, Resource, Tax compliance