Page 46 - IRS Employer Tax Guide

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Fileid: … ations/P15/2020/A/XML/Cycle07/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
perform the acts of an employer. The IRS will designate a wages each entity paid to the employee during the appli-
third-party payer on behalf of an employer if the third party cable quarter and issue Forms W-2 reporting the wages
has a service agreement with the employer. A service each entity paid to the employee during the year.
agreement is an agreement between the third-party payer
and an employer in which the third-party payer (1) asserts
it is the employer of individuals performing services for the How To Get Tax Help
employer; (2) pays wages to the individuals that perform
services for the employer; and (3) assumes responsibility
to withhold, report, and pay federal employment taxes for If you have questions about a tax issue, need help prepar-
the wages it pays to the individuals that perform services ing your tax return, or want to download free publications,
for the employer. forms, or instructions, go to IRS.gov and find resources
A payer designated under section 3504 performs tax that can help you right away.
duties under the service agreement using its own EIN. If
the IRS designates a third-party payer under section Preparing and filing your tax return. Go to IRS.gov/
3504, the designated payer and the employer are jointly li- EmploymentEfile for more information on filing your em-
able for the employment taxes and related tax duties for ployment tax returns electronically.
which the third-party payer is designated. Employers can register to use Business Services On-
For more information on a payer designated under sec- line. The SSA offers online service for fast, free, and se-
tion 3504, see Regulations section 31.3504-2. cure online Form W-2 filing options to CPAs, accountants,
Certified professional employer organization enrolled agents, and individuals who process Forms W-2,
(CPEO). The Stephen Beck, Jr., Achieving a Better Life Wage and Tax Statement, and Forms W-2c, Corrected
Experience Act of 2014 required the IRS to establish a Wage and Tax Statement. Employers can go to SSA.gov/
voluntary certification program for professional employer employer for more information.
organizations (PEOs). PEOs handle various payroll ad- Getting answers to your tax questions. On
ministration and tax reporting responsibilities for their IRS.gov, get answers to your tax questions any-
business clients and are typically paid a fee based on time, anywhere.
payroll costs. To become and remain certified under the • Go to IRS.gov/Help for a variety of tools that will help
certification program, certified professional employer or- you get answers to some of the most common tax
ganizations (CPEOs) must meet various requirements de- questions.
scribed in sections 3511 and 7705 and related published
guidance. Certification as a CPEO may affect the employ- • Go to IRS.gov/Forms to search for our forms, instruc-
ment tax liabilities of both the CPEO and its customers. A tions, and publications. You will find details on 2019
CPEO is generally treated for employment tax purposes tax changes and hundreds of interactive links to help
as the employer of any individual who performs services you find answers to your questions.
for a customer of the CPEO and is covered by a contract • You may also be able to access tax law information in
described in section 7705(e)(2) between the CPEO and your electronic filing software.
the customer (CPEO contract), but only for wages and
other compensation paid to the individual by the CPEO.
However, with respect to certain employees covered by a Tax reform. Tax reform legislation affects individuals,
CPEO contract, you may also be treated as an employer businesses, and tax-exempt and government entities. Go
of the employees and, consequently, may also be liable to IRS.gov/TaxReform for information and updates on
for federal employment taxes imposed on wages and how this legislation affects your taxes.
other compensation paid by the CPEO to such employ-
ees. IRS social media. Go to IRS.gov/SocialMedia to see the
CPEOs must complete Schedule R (Form 940), Sched- various social media tools the IRS uses to share the latest
ule R (Form 941), or Schedule R (Form 943) when filing information on tax changes, scam alerts, initiatives, prod-
an aggregate Form 940, 941, or 943. CPEOs file Form ucts, and services. At the IRS, privacy and security are
8973 to notify the IRS that they started or ended a service paramount. We use these tools to share public informa-
contract with a customer. To become a CPEO, the organi- tion with you. Don’t post your social security number or
zation must apply through the IRS Online Registration other confidential information on social media sites. Al-
System. For more information or to apply to become a ways protect your identity when using any social network-
CPEO, go to IRS.gov/CPEO. Also see Revenue Proce- ing site.
dure 2017-14, 2017-3 I.R.B. 426, available at IRS.gov/irb/ The following IRS YouTube channels provide short, in-
2017-03_IRB#RP-2017-14. formative videos on various tax-related topics in English,
Spanish, and ASL.
If both an employer and a section 3504 author-
TIP ized agent paid wages to an employee during a • Youtube.com/irsvideos.
quarter, or if both an employer and a CPEO paid • Youtube.com/irsvideosmultilingua.
wages to an employee during a quarter, both the em-
ployer and the section 3504 authorized agent (or the • Youtube.com/irsvideosASL.
CPEO, if applicable) should file Form 941 reporting the

Publication 15 (2020) Page 45