As a preparer signing a 941, are we liable for the payroll taxes for the company we prepared the 941 for? My husband (who works in an accounting office of a large company) was once told that if a preparer signs the return they are liable for any discrepancies in the reporting and paying of the taxes. For example, if they paid other people that they didn't tell you about which would make the tax deposits and the 941 wrong.
But logic tells me that if you compute the payroll, have them make the deposits and then you do the 941 based on the information that was given you, how could you be liable for something they didn't tell you they did?
Reason for this question is that a motel opened recently and they got my name from one of my other clients. They only want me to do the payroll. He had me order checks last week and they will fax me the list of people to be paid with hours worked and hourly rate. I will compute the payroll and print the checks. I will set them up for EFTPS so that I know the tax deposits are made. Then I will do the 941's and state UC for them and w-2's at the end of the year.
They do not want me to do the rest of the bookkeeping for them. He says he does it himself. "New business- trying to save money" - you know the story. Actually I don't think I want to do all of their bookkeeping. When the mother gets mad and starts yelling in Chinese, I get scared. They also have other businesses in another city and have an accountant there that is doing partnership returns. So they can take their end of year figures to her and let her keep doing the returns.
They mainly wanted someone locally to do the payroll so they can get the checks right away.
So will I have any liablity?
Linda F
But logic tells me that if you compute the payroll, have them make the deposits and then you do the 941 based on the information that was given you, how could you be liable for something they didn't tell you they did?
Reason for this question is that a motel opened recently and they got my name from one of my other clients. They only want me to do the payroll. He had me order checks last week and they will fax me the list of people to be paid with hours worked and hourly rate. I will compute the payroll and print the checks. I will set them up for EFTPS so that I know the tax deposits are made. Then I will do the 941's and state UC for them and w-2's at the end of the year.
They do not want me to do the rest of the bookkeeping for them. He says he does it himself. "New business- trying to save money" - you know the story. Actually I don't think I want to do all of their bookkeeping. When the mother gets mad and starts yelling in Chinese, I get scared. They also have other businesses in another city and have an accountant there that is doing partnership returns. So they can take their end of year figures to her and let her keep doing the returns.
They mainly wanted someone locally to do the payroll so they can get the checks right away.
So will I have any liablity?
Linda F
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