Outsourcing payroll – medical practice beware

Written by Reed Tinsley, CPA | September 8, 2008

According to Headliner Volume 243 posted to the IRS website at www.irs.gov/businesses/small/article/0,,id=186029,00.html , outsourcing payroll duties can be a sound business practice. However, the employer is ultimately responsible for the deposit and payment of its federal tax liabilities. Even though the third-party is making the deposits, the employer remains the responsible party. If the third-party fails to make the federal tax payments, the IRS may assess penalties and interest on the employer's account. The employer may also be held personally liable for certain unpaid federal taxes.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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