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MasterTax MasterTips:
- Is your payroll tax process quick, easy, efficient, and up-to-date?
- Are you using the best technology to streamline your payroll tax processing?
- Is your payroll tax system integrated with your other HR and financial functions?
- Are you compliant with all Federal, State and Local payroll tax regulations?
- Have you ever had to pay penalties or interest for late filing or non-compliance?
Whether you process your company’s payroll taxes manually, outsource them to a payroll tax service provider or use an off-the-shelf software program – there’s a better way to do payroll taxes!
Presenting MasterTax MasterTips – 17 ways to save your company time and money on payroll taxes.
Tip #1
Utilize software to receive and maintain tax compliance rules changes.
Keeping up with ever-changing tax codes, forms, deadlines, and rules can be challenging. Federal, State and Local jurisdictions are constantly adding and modifying rules for payroll tax payments. It’s your job to stay up-to-date and compliant.
- MasterTax has a dedicated staff of compliance experts who monitor Federal, State, and Local tax rule changes on an ongoing basis.
- MasterTax software stays current with payroll tax code changes, new forms, and rule modifications for over 10,000 jurisdictions throughout the U.S.
Tip #2
Use the Federal 2% Holdback Rule to maximize cash reserves.
Although the IRS requires you to deposit the entire amount of your tax liability on or before the deposit due date, you are not assessed a penalty for depositing less than 100% of the amount if both of the following conditions are met:
- The deposit shortfall does not exceed $100 or 2% of the amount required to be deposited, whichever is greater.
- The shortfall is paid by the designated make-up day. (The IRS uses a formula to designate specific make-up days for monthly depositors and semi-weekly depositors.)
MasterTax automatically calculates the maximum amount you are allowed to hold back, and then ensures that you pay the held-back amount to the IRS on time. It’s one way MasterTax helps you manage your cash to your advantage.
Tip #3
Balance QTD deposits and liabilities throughout the quarter.
Balancing QTD deposits and liabilities throughout the quarter ensures accuracy, and speeds the quarter-end closing process, and helps you avoid penalties.
- Payroll tax returns are typically due once a calendar quarter, but tax payments may need to be made more frequently than that. Reconciliation ensures that payments made during the quarter (QTD deposits) equal the amount owed as reported on the tax form (QTD liabilities).
- If you do this reconciliation manually or with off-the-shelf software, you may generate numerous spreadsheets. With MasterTax, you simply import a file from your payroll system. MasterTax automatically identifies any discrepancies.
Tip #4
Interface your payroll system with a payroll tax compliance application.
Some payroll processing software platforms require special tools, applications, and/or data input processes. The interface is not always smooth and data may become corrupted during the integration process. Some systems may misinterpret critical data strokes or even entire fields.
- MasterTax payroll processing software offers a smooth interface that enables you to integrate your payroll data quickly and easily. You can correct input errors, move data, and retrieve information with ease.
- Even after you make changes, corrections, or revisions, MasterTax ensures you are fully compliant.
Tip #5
Set up automatic processes to schedule due dates for all tax payments.
Scheduling payroll tax payments can be one of the more tedious tasks in payroll processing.
- MasterTax automatically calculates the due date of your tax payments, based on the payroll issue date and the deposit frequency rule set by the taxing authority.
- By using MasterTax software to schedule due dates, you eliminate the possibility of manual date scheduling errors and ensure on-time payments.
